To calculate the velocity of water exiting a pipe from an overhead tank 10 meters high, Bernoulli's equation is applied, which relates pressure, kinetic energy, and gravitational potential energy. Ignoring frictional losses, the formula simplifies to v = sqrt(2gh), where g is the acceleration due to gravity and h is the height of the tank. For a height of 10 meters, the velocity at the pipe's end can be calculated as approximately 14.14 m/s. The discussion emphasizes the importance of understanding fluid dynamics principles, particularly the work-energy theorem, in deriving this equation. A diagram was requested but not provided in the discussion.