A word bed is a graphical arrangement of letters where each horizontal line forms a word, and the solution requires selecting letters from each vertical column. The first letter of the hidden word is taken from the first column, the second letter from the second column, and so forth. An example provided is the word "HEADLAND," which fits the pattern by selecting appropriate letters from each column. This concept is discussed within the context of geographical terms, highlighting its relevance in puzzles and word games.