Creating an AWS Lambda Function for Python using Serverless involves several steps, starting with installing the Serverless framework globally and setting up AWS credentials. The user then guides through creating a new project, selecting the type of project (in this case, Node.js) and providing additional details such as the name of the project and whether to activate added services. A basic `serverless.yml` file is generated, which outlines the service name, provider information for AWS Lambda with Python runtime, function details, and deployment criteria. The user can then deploy the function to AWS Lambda using Serverless, test it using the AWS Console or CLI, and also create an API Gateway trigger to test the function as an HTTP endpoint.