For sets (which are your operands here) |returns the union of both sets (operands), and the operator orreturns the first true operand (non-empty set) or the last if all operands are false, making it ora short-circuit operator.
Consider the following examples:
>>> set([1,2,3]) | set([4])
set([1, 2, 3, 4])
>>> set([1,2,3]) or set([4])
set([1, 2, 3])
>>> set([1,2,3]) or set([])
set([1, 2, 3])
>>> set([1,2,3]) | set([])
set([1, 2, 3])
, , , | or .
or , | - , __or__ __ror__ , [max-] collections.Counter .