Since the dump is in one transaction, you get a consistent view of all the tables in the database. This is probably best explained by a counterexample. Say you dump a database with two tables Orders and OrderLines.
I used to run into problems where mysqldump without the --single-transaction parameter would consistently fail due to data being changed during the dump. As far as I can figure, when you run it within a single transaction, it is preventing any changes that occur during the dump from causing a problem. Essentially, when you issue the --single-transaction, it is taking a snapshot of the database at that time and dumping it rather than dumping data that could be changing while the utility is running.
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