Lex is a tool that generates lexical analyzers based on regular expressions. It reads a specification file defining patterns and actions, and outputs C code implementing the lexical analyzer. The generated code uses a finite state machine to efficiently scan input and recognize tokens based on the defined patterns. Lex is often used with Yacc, which generates parsers based on context-free grammars to recognize higher-level syntactic structures. Together, Lex and Yacc allow defining the lexical and syntactic rules of a language to build a compiler or interpreter.