This video explains how to associate a Lambda function with an Amazon Lex v2 bot for use with code hooks. The process involves connecting the Lambda to an alias, which points to a specific bot version. Different Lambda functions can be used for different locales or languages within the same bot. The video covers three methods for associating a Lambda: creating an alias via API, updating an alias via API or console, and creating a bot through CloudFormation or CDK. It also discusses granting permissions for the Lex service to invoke the Lambda function. The information is crucial for developers working with Lex v2 bots and Lambda integrations.