Data lineage is significant in data governance as it provides a detailed overview of the flow of data through various stages of processing, from origin to destination. Understanding data lineage allows organizations to trace the transformation, movement, and usage of data over time, facilitating compliance with regulatory requirements. It also helps in identifying data quality issues, ensuring data integrity, and promoting transparency. By documenting data lineage, organizations can better manage their data assets, enhancing decision-making and fostering more effective governance practices.