|This article is about an older version of DF.|
Shearing one of a handful of animals gets you wool. Wool can then be spun into yarn which can be turned into cloth at a loom, which then can be used to create a variety of textile products such as bags, clothing, rope or crafts.
A dwarf with the spinner labor enabled can process wool into yarn at a farmer's workshop with the "Spin Thread" job order. With a loom, any dwarf with the weaver labor enabled will automatically turn any yarn into cloth.