This lesson shows how to declare an Angular component as standalone by adding standalone: true in the @Component decorator. The selector and template are defined as usual. Angular then treats this component as independent, so it can be used directly in HTML without declaring it in an NgModule. The execution steps include reading the decorator, parsing selector and template, creating the component class, and rendering it in the DOM. Variables like standalone flag, selector, and template are tracked through these steps. Key points include understanding why NgModule is not needed and how Angular uses the selector to render the component. The visual quiz tests understanding of these steps and the effect of removing the standalone flag.