You can access to the standart output stream as
p = sub.Popen("cmd", stdout=sub.PIPE, stderr=sub.PIPE)
print(p.stdout.readline()) # This read a line
You can perform any operation o the file streams.
When you use readline in a standart output of a proccess the main thread of the app wait for that proccess to write some thing on the ouput. When that process write to the output you program continue.
You must know that before read a line from the proceess you need to call flush() on the stream. Because the streams have a cache time before the real values are written to it.
You can see this post, this is a good explanation of how this work on python