TeX uses \abovedisplayskip and \belowdisplayskip for the spacing above/below equations. There's also a short version of the former two commands for paragraphs ending/beginning with shorter lines. Here's an example showing the difference:

\documentclass{article}
\usepackage{amsmath}% http://ctan.org/pkg/amsmath
\begin{document}
Text text text text text text text text text text
\begin{equation}
1 + 2 + 3 = 6
\end{equation}
Text text text text text text text text text text
\begin{align}
1 + 2 + 3 &= 6 \\
1 + 2 + 3 &= 6
\end{align}
\setlength{\belowdisplayskip}{0pt} \setlength{\belowdisplayshortskip}{0pt}
\setlength{\abovedisplayskip}{0pt} \setlength{\abovedisplayshortskip}{0pt}
Text text text text text text text text text text
\begin{equation}
1 + 2 + 3 = 6
\end{equation}
Text text text text text text text text text text
\begin{align}
1 + 2 + 3 &= 6 \
1 + 2 + 3 &= 6
\end{align}
\end{document}
The same effect is obtained with/without a modified \baselinestretch - it is just clearer when viewed without that set. Of course, you can modify these lengths as needed.
Edit: Heed @egreg's suggestion and/or @Mico's answer regarding two equations
\begin{gather} 1 + 2 + 3 = 6 \ 2 + 4 + 6 = 12 \end{gather}shows two equations in one line. – Ichibann Oct 27 '11 at 19:52\\instead of\– Ichibann Oct 27 '11 at 19:56=character in equations? When I use\begin{align} 1 + 2 + 3 = 6 \\ 2 + 4 + 6 = 12 \end{align}it aligns to the right. – Ichibann Oct 27 '11 at 20:01equations is wrong? – Ichibann Oct 27 '11 at 20:17equationenvironments. However, doing so will in general use more space than if you use an environment that "knows" that successive lines are equations rather than switches between text and equations. Moreover, if you use consecutiveequationenvironments, you can't align them on, say, the equal sign -- something you could do if you'd use thealignenvironment, say. – Mico Oct 27 '11 at 21:04gatherenvironment. I didn't want to mess around with document-wide spacing parameters just because LaTeX didn't "know" I was providing a series of equations. – Warrick Mar 23 '12 at 09:42\labeldirectives at the end of each line (but before\\) in agatherenvironment. You can then\ref(or\eqref, etc) them just as you would a simpleequationenvironment. – Mico Aug 23 '15 at 09:56aligntoequationbecause the alignment tab has changed or must be changed for space related issues (equation will not fit in one line). Unfortunately using one line without indentation tab spoils the whole alignment. – benni Mar 18 '17 at 22:27