Lex is a tool that generates scanners (also known as lexical analyzers) that recognize lexical patterns in text. It takes regular expression rules defined by the user and generates a C program to scan input and return tokens. The generated C code defines a function yylex() that scans the input and returns tokens as integer values. The user can also add custom code to the generated file. Lex specifications have declarations, translation rules that map patterns to actions, and optional driver code. It works by taking a lex specification file as input, generating a C file, which is then compiled along with any driver code to produce an executable that recognizes tokens in input text based on the defined rules.