There are many ways to navigate the folder hierarchy in Lion – that is to say, navigate down several layers or move up folder levels one at a time.
To view a folder’s hidden hierarchy menu, right-click directly on the title of the Finder window. You can also Command + Click the title as well. The most recent folder in the hierarchy list is displayed. This will also work in most Mac applications – Control-click the Title Bar so see the hierarchy of the active document.
You can also quickly navigate to the enclosing folder (the next folder above in the hierarchy) by holding down the Command key and pressing the up arrow. For example, if you were looking at your documents subfolder (underneath your Home folder), pressing the Command and Up Arrow will change the display to the Home folder. Each time you press the keystroke combination, you will move up the folder hierarchy one level at a time.
If you want to display the folder hierarchy on every Finder window, you can display the Path Bar by selecting View > Path Bar from the Finder menu. This will display the path (or hierarchy) of the current folder.
Double-click on any folder in the path to jump to that folder or right-click the folder and choose Open from the contextual menu. To hide the Path Bar, select View > Hide Path Bar from the Finder menu.