Theorem: The cross ratio $(z_1,z_2,z_3,z_4)$ is real if and only if the four points lie on a circle or on a straight line.
We need only show that the image of the real axis under any linear transformation is either a circle or a straight line. Indeed, $Tz=(z,z_2,z_3,z_4)$ is real on the image of the real axis under the transformation $T^{-1}$ and nowhere else.
I don't understand this paragraph. Why is it that $Tz$ is real on the image of the real axis under $T^{-1}$, and why is it real nowhere else? And why is it enough to show only this?