Distinguing bewteen 'names' and 'name' on a function (Python)

Question

I have been studying this python guide and it showed this function

names = ['jaques', 'Ty', 'Mia', 'pui-wa']
print("longest name is:", max(names, key=lambda name: len(name)))
print("names sorted case insensitive:", sorted(names, key=lambda name: name.lower()))

Longest name is: jacques
Names sorted case insensitive: ['jacques', 'Mia', 'pui-wa', 'Ty']

seems simple but I don't see where "name" is defined, and for python it should be different than "names" right?

Answer 1

It's defined using lambda
https://www.sololearn.com/learn/JUMP_LINK__&&__Python__&&__JUMP_LINK/2460/?ref=app

Answer 2

so when using lambda it assumes "name" refers to an element of the function?

Answer 3

oh ok I noticed that part. I don't see how "name" relates to the elements of "names" tho. I suppose "key" connects them?
thanks, I'm new at this