The innovation in the Linotypes is that they use a keyboard to set the text AND that they automatically sort the matrices (the blocks containing the letter images) in a magazine after use. Before the Linotype existed, this all had to be done by hand.
The following image provides the most important steps which happen within the Linotype (and Intertypes, which are almost identical).
In the machine, matrices are stored in magazines, which are positioned on the top right (nr 1). This magazine contains all the matrices on which the machine relies to set a line of text. The circulation of the matrices is indicated by arrows on the image. The matrices are set in the correct order using a keyboard (nr 2). Different kinds of keyboards have been in use (see the diagrams here and the differences per country here). When a line of type is completed and the type setter reviewed it on the correctness of the text, the line is moved into the machine with the assembling elevator (nr 3), which moves the matrices into the first elevator (nr 4). Here, molten lead is poured into the matrices to cast a line of type (nr 4). The line of type is called a 'slug'. Afterwards, the second elevator takes the matrices up (nr 5), and the distribution (nr 6) puts the matrices on the right place in the magazine.
The output of the machine are 'slugs', lines of type in lead. Those slugs can have different dimensions and type sizes on them, depending on the design of the page. Note that the type is mirrored. This is because the Linotype is NOT used for printing. It sets type, just like you would do with Microsoft Word. The slugs have to be taken to a printing press, where they are inked and where the letters are printed on paper.
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