You can actually do two things:
- Let vim format (i.e.change) your text to have shorter lines, by inserting linebreaks
- Leave lines as they are, but display them wrapped
Which do you want?
Option 1 would be achieved by setting textwidth (for example :set textwidth=30 (from Swaarop’s answer)). Then you can reformat your text by highlighting it (in visual mode) and typing gq. (textwidth can be abbreviated as tw, thus :set tw=30.)
Option 2 can be toggled by running :set wrap / :set nowrap. This will wrap lines which are too long for the window.
Both are independent.