The equation y^2 = x^2 represents two intersecting lines, y = x and y = -x. It cannot be parameterized by a continuous curve due to the removal of the origin resulting in four disconnected pieces, while removing a point from an interval yields only two. However, a non-continuous parameterization is possible based on cardinality arguments, as any proper real interval shares the same cardinality as the graph of y^2 = x^2. The discussion highlights the challenge of finding an explicit parameterization and emphasizes the existence of a mapping from an interval to the equation. Overall, the conversation revolves around the complexities of parameterizing the equation in both continuous and non-continuous forms.