MATLAB provides a wide range of colors for line plotting. Users can choose from predefined color palettes or define custom colors. For line color pairing, it is important to ensure that the colors are distinguishable for better visualization. MATLAB's 'colormap' function allows for the selection and manipulation of color maps. Additionally, the 'plot' function supports various color options such as 'r' for red, 'g' for green, 'b' for blue, and more.