A line in R^3 is parallel to the xy-plane if its direction vector has a zero z-component, meaning it can be expressed as (v1, v2, 0) with v1 and v2 not both equal to zero. This indicates that the line lies flat within the xy-plane but does not align with either the x-axis or y-axis unless one of the components is zero. If v1 is zero, the line is parallel to the y-axis, and if v2 is zero, it is parallel to the x-axis. Understanding this helps in formulating the parametric and symmetric equations for such lines. The key takeaway is that a line parallel to the xy-plane maintains a constant z-value while varying in the x and y directions.