The two states of a wire are usually represented by some measurement of an electrical property: Voltage is the most common, but current is used in some logic families. A threshold is designed for each logic family. When below that threshold, the wire is "low," when above "high." Digital circuits establish a "no man's area" or "exclusion zone" that is wider than the tolerances of the components. The circuits avoid that area, in order to avoid indeterminate results.
It is usual to allow some tolerance in the voltage levels used; for example, 0 to 2 volts might represent logic 0, and 3 to 5 volts logic 1. A voltage of 2 to 3 volts would be invalid and would occur only in a fault condition or during a logic level transition, as most circuits are not purely resistive, and therefore cannot instantly change voltage levels. However, few logic circuits can detect such a fault, and most will just choose to interpret the signal randomly as either a 0 or a 1.
The levels represent the binary integers or logic levels of 0 and 1. In active-high logic, "low" represents binary 0 and "high" represents binary 1. Active-low logic uses the reverse representation.