Paste works in background and automatically collects all data you copy. To show Paste use an activation shortcut (Shift+Cmd+V by default) or click on Paste icon in menu bar (the "P" icon near the clock) and select "Show Paste".
Use "Esc" key, activation shortcut or just click whenever outside the timeline to hide Paste.
When you double-click on a history item in timeline, it is copied to your clipboard again, so you can use it by pasting to any application with Cmd+V manually. Direct Paste allows you to automatically paste those items to the application you currently work with.
Due to Mac App Store restrictions to enable this feature you should dowload a small application – Paste Helper.
There are two options to strip formatting: strip styles for all copied data or paste a selected item as plain text.
To remove all copied text styles and store it as Plain Text check the "Strip formatted text styles" option in Preferences.
If you want to paste a particular items as Plain Text, select them and hit Cmd+Return or right-click on them and select "Paste without styles" in context menu.
Paste is designed to be fully accessible from the keyboard. You can navigate through items using arrow keys ← and →, and then press “Return” key to paste. Or even Cmd+Return to paste item as Plain Text. And finally, to find something—just start typing.