Source : Free On-Line Dictionary of Computing

word wrap
     
         A feature of {word processors} and most {text editors}
        where a word which would extend past the right hand margin is
        moved to the following line.  This is more sophisticated than
        character wrap which only moves to the next line for the first
        character past the right margin and thus will break some words
        in the middle.  The program may actually insert a new line in
        the text at the point where it is wrapped or it may only
        display it as though it contained a new line at that point.
     
        (1996-07-24)