The lecture on biodiversity by Srinivas Gajjela defines biodiversity as the variety of life on Earth, including ecosystems, species, and genetic diversity. It highlights the importance of biodiversity for ecosystem health, the interdependence of living organisms, and the benefits it provides, such as regulating climate and resources. Additionally, it categorizes biodiversity into four levels: species diversity, genetic diversity, ecosystem diversity, and functional diversity, illustrating how each level contributes to ecological balance.