Step 1: Find where the curves meet.
The parabola is $y=x^2$ and the line is $y=x$. Set them equal to get the crossing points. $x^2=x$ gives $x(x-1)=0$, so $x=0$ and $x=1$.
Step 2: Decide which curve is on top.
Pick any value between 0 and 1, say $x=0.5$. The line gives $0.5$ and the parabola gives $0.25$. So the line stays above the parabola here.
Step 3: Set up the area integral.
Area is the integral of (top minus bottom) from 0 to 1. \[ A=\int_0^1 (x-x^2)\,dx \]
Step 4: Integrate and put in the limits.
\[ A=\left[\frac{x^2}{2}-\frac{x^3}{3}\right]_0^1=\frac{1}{2}-\frac{1}{3}=\frac{1}{6} \] So the area is $\frac{1}{6}$ square units.
\[ \boxed{\frac{1}{6}\text{ sq. units}} \]