I have trouble following the category-theoretic statement and proof of the Yoneda Lemma. Indeed, I followed a category theory course for 4-5 lectures (several years ago now) and felt like I understood everything until we covered the Yoneda Lemma, after which point I lost interest.
I guess what I'm asking for are some concrete examples of the Yoneda Lemma in action. For example, how does it apply to specific categories, like a category with one element, or the category Grp or Set? What results does it generalize? Is there a canonical route to understanding the statement of the Lemma?
If you need to assume knowledge, then assume I have a fairly rigorous education in pure/applied mathematics at the undergraduate level but no further.
Roughly speaking, the Yoneda lemma says that one can recover an object $X$ up to isomorphism from knowledge of the hom-sets $\text{Hom}(X, Y)$ for all other objects $Y$. Equivalently, one can recover an object $X$ up to isomorphism from knowledge of the hom-sets $\text{Hom}(Y, X)$.
As I have said before on math.SE, there is a meta-principle in category theory that to understand something for all categories, you should first understand it for posets, regarded as categories where $a \le b$ if and only if there is a single arrow $a \to b$, and otherwise there are no morphisms from $a$ to $b$. For posets, Yoneda's lemma says that an object is determined up to isomorphism by the set of objects less than or equal to it (equivalently, the set of objects greater than or equal to it). In other words, it is determined by a Dedekind cut! In other other words, Yoneda's lemma for posets says the following:
This is a surprisingly useful idea in real analysis. More generally it leads to the idea that Yoneda's lemma, among other things, embeds a category into a certain "completion" of that category: in fact the standard contravariant Yoneda embedding embeds a category into its free cocompletion, the category given by "freely adjoining colimits."
As far as examples go, it turns out that in many categories one can restrict attention to a few specific objects $Y$. For example: