AWS Lambda is a serverless computing platform that makes it easy to call or automatically trigger function code to execute on the platform. It allows developers to write code in languages such as Go, Node.js, Java, or Python without worrying about server maintenance or scaling. To integrate AWS Lambda with TimescaleDB, which can be hosted on Managed Service for TimescaleDB, developers can use a Postgres/SQL client library available for their chosen language and setup a Lambda function to execute the code. Notable tips and tricks include using AWS Lambda Layers to load client libraries, leveraging Lambda environment variables to set connection parameters, and controlling network security by configuring Allowed IP Address in Managed Service for TimescaleDB. By following these steps, developers can easily integrate AWS Lambda with TimescaleDB and start working with time-series data.