1: see you later
2: Or more accurately...
It is just like a bye in any other sport. To create a 'standard' tournament without a bye you need a specific number of teams (think 2, 4, 8, 16, 32, 64...). When there is any other number of teams the chart or draw won't be able to "branch off" equally, resulting in some teams playing fewer games than others. When a team advances without having to play another team it is considered a 'bye'.
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If there is not enough players in turnament, bye is awarded to seeded players. It is a free passage to second round of a tournament.