Further explanation on Lipschitz condition

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I am unable to understand the intent of Lipschitz condition and how to apply it to problems. Primarily the equation

$$\frac{f(x,y_1)-f(x,y_2)}{y_1-y_2}$$

And questions associated with checking whether certain $f(x,y)$ satisfy a Lipschitz condition. Could someone please explain and clarify this for me?