This lesson shows how variables and outputs work in cloud infrastructure deployment. First, variables are defined with default values or user inputs. Then, these variables are used in the configuration to customize resources. When the infrastructure is deployed, outputs are computed based on variables or resource attributes. Outputs become available after deployment and can be viewed or used in other configurations. The execution table traces each step from defining variables, using them, deploying, capturing outputs, and using outputs elsewhere. Variables hold values throughout, and outputs depend on those variables. This helps make deployments flexible and reusable.