In MATLAB, a callback function is a special function that runs when an event happens, like clicking a button. First, you define the callback function. Then, you create a UI object such as a button. You assign the callback function to the button's event property. MATLAB waits for the user to trigger the event. When the user clicks the button, MATLAB calls the callback function, which runs the code inside it. After the callback finishes, MATLAB waits for the next event. Variables like the button object and event data change during this process. The callback does not run immediately after assignment; it runs only when the event occurs.