When this chapter opens, the Halls hear rumors about the burglary the night before.
Everyone at the bar is interested in the strange behavior of the stranger, who strangely stranges the strange strange strange. Okay, we get it. He's strange and the villagers don't like him.
Mrs. Hall and the stranger start arguing about money because he hasn't paid his bill recently. But he says he found some more money recently (hmmm) and would be happy to pay.
This, of course, makes everyone think that he was behind the burglary at the vicar's house.
Finally, the stranger gets so fed up that he reveals himself to the people at the bar:
"You don't understand," he said, "who I am or what I am. I'll show you. By Heaven! I'll show you." Then he put his open palm over his face and withdrew it. The centre of his face became a black cavity. (7.28)
The village people freak out, naturally. They were prepared for scars and ugliness, but what on earth is this?
All the villagers who aren't in the Coach and Horses come running in to see what all the screaming is about. (Good idea, run toward the screaming...) There are a bunch of people out in the town, since this is a festival day (Whit Monday).
Eventually, Constable Jaffers comes to arrest the stranger. But when he (and some other brave people) go to the inn, they find a headless figure eating some bread and cheese.
The stranger explains that he's the Invisible Man. This isn't much of an explanation, but it's the first time "Invisible Man" has been used in the text. So from now on, that's what we'll call him.
The stranger – ahem, the Invisible Man – fights with the crowd and seems to be losing. Finally, he says he'll surrender, but instead, he just takes off all his clothes. Of course, this makes him totally invisible and he starts winning the fight like whoa.
The Invisible Man starts to beat down on crowd and they all panic. Constable Jaffers falls pretty hard on his head, and it's not clear whether he's dead or just unconscious.