<jargon> 1. Ready for use.

E.g. "The graph plotter's fixed and on-line again".

2. Interactive as opposed to batch.

Accessible via a computer (or terminal), rather than on paper or other medium.

3. Of a user, actively using a computer system, especially the Internet.

E.g "I haven't been on-line for three days."

"On-line" should be hyphenated because it is compounded from two words but the hyphen is often omitted in names of organisations or services.

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ones complement
One-Time Password
One Time Programmable Read-Only Memory
one-way function
one-way hash function
Aluminum Book
amateur packet radio
America On-Line, Inc.
On-Line Analytical Processing
Online Computer Library Center, Inc.
On-Line Computer system
Online Media
On-line Process Synthesizer