Lazy evaluation is an optimization strategy used in programming, particularly in languages like Python, that delays the computation of an expression until its value is actually needed. This approach can enhance performance by conserving resources and minimizing unnecessary calculations. Instead of evaluating all expressions immediately, lazy evaluation allows for the creation of infinite data structures and efficient memory usage, as values are generated on-the-fly. This technique not only improves efficiency but also helps in managing large datasets without overwhelming system memory. Overall, lazy evaluation is a powerful tool for optimizing code execution and resource management.