If you're reading this page, you're probably setting up your first role for a Lambda function. While it's an easy process, we want to make sure you understand all of the "whys" that go into this process.
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Choose "Create a custom role" from the Role dropdown. This will launch a new tab in your browser, so make sure that popups are enabled when you attempt this.
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You are now creating a new IAM role. IAM stands for Identity and Access Management. (You can read more about IAM here.) By creating this role, you are enabling your Lambda function to be able to create Amazon CloudWatch logs for your function. (You can read more about managing permissions with IAM roles here.)
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You don't need to make any changes. Click the Allow button in the bottom right corner.
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This should close the new tab, and populate your Lambda function appropriately. If your "Lambda function handler and role" section doesn't look like the screenshot below, try refreshing your page and selecting your new role from the "existing role" dropdown.
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You can now return to what you were doing.