What is this line on my dock?

Solution 1:

This is a progress bar under Downloads folder. It sometimes doesn't go away after completing the downloads. One solution for this is to enter this command in Terminal:

killall Dock

This will reset the Dock.

Solution 2:

Moving the downloads folder to a new position on the Dock and then moving it back takes care of the problem without using Terminal. Great solution for non-technical people! :)