The text explores the concept of runtime environments, traditionally associated with programs and applications, extending it to include software components. These environments are described as "onion layers," where inner layers depend on outer ones, influencing component compatibility. The text highlights the importance of defining and implementing runtime environments in component development to ensure compatibility and proper functioning, emphasizing the role of development environments in configuring tools and settings to align with target runtime environments. It discusses elements like peer dependencies and component previews, which are vital in establishing the runtime context necessary for components to function. Additionally, the text touches on strategies to broaden component compatibility, such as using generic environments, dependency injection, and multiple build outputs, enabling components to operate across varied runtime contexts.