In case you skip it...

This episode introduces Deanna Troi’s mother, Lwaxana.

Lwaxana Troi, like most full Betazoids, is a telepath. Deanna’s father was human which is why she can only sense emotions. Full Betazoids can read minds and communicate mentally, and Lwaxana is a particularly powerful telepath.

Lwaxana is a Federation Ambassador, as well as holding a handful of titles on Betazed - specifically, she is a daughter of the Fifth House, the Holder of the Sacred Chalice of Rixx, and Heir to the Holy Rings of Betazed. The significance of these titles is not explained, but they are apparently impressive as she will remind people of them when she feels she has been slighted.

Lwaxana is something of a free spirit, very outspoken and vivacious. As a result, she tends to embarrass Deanna and the rest of the crew find her annoying or exhausting to various degrees. Picard in particular is vexed by her, as he tries to maintain dignity and decorum in their interactions and she tends to destroy these things entirely. (How such a person ended up as a diplomat is not explained.)

Lwaxana is often accompanied by her attendant Mr. Homn, a tall, silent man of unknown species.

This episode also establishes that in the traditional Betazoid wedding ceremony, as a gesture of love and openness, all in attendance must be naked.