This lecture explains the concept of Huffman coding by drawing a parallel with organizing a kitchen, where frequently used items are placed within easy reach. It delves into the importance of choosing shorter codes for commonly occurring letters to minimize the overall code length. The lecture also explores the history of Huffman coding, its application in Morse code, and the process of constructing a Huffman tree based on letter frequencies. By the end, it demonstrates how Huffman coding optimally compresses individual letters but also hints at the possibility of further text compression through coding letters in groups.