What is Lambda right sizing?

Could you please elaborate on what exactly is meant by the term "Lambda right sizing"? I understand it's related to optimization in the context of serverless computing, specifically with Amazon Web Services' Lambda service, but I'm curious about the specifics. Is it about adjusting the memory allocation for Lambda functions to balance cost and performance? Or does it encompass other factors as well? How does one determine the optimal configuration for Lambda right sizing, and what are the potential benefits and drawbacks of this approach?