The Android platform doesn’t provide a full support for the new features introduced by Java 7 & 8. One of them is Nevertheless, the developers of the Android Studio IDE chose to provide their own implementation for lambda expressions.
When folding the code that includes the instantiation of an anonymous inner class that implements an interface with one method we can expect to get a lambada expression.
If you want to get a better understanding for lambda expressions in Java I recommend you to check my slides for this topic in the Java SE Applications Development course at http://abelski.lifemichael.com. Makre sure you understand the Inner Classes topic before trying to understand the lambda expressions topic.