The discussion centers on demonstrating that the Dirac delta function is a distribution, emphasizing its properties of continuity and linearity. It is defined as a functional that evaluates a test function at a specific point, represented mathematically as ⟨δ_{x_0}, φ⟩ = φ(x_0). The conversation highlights that distributions operate on test functions, which form a vector space, allowing for the application of linearity. Continuity is established through the boundedness of the functional, as it remains finite when the test function is constrained. Overall, the Dirac delta function is characterized as a continuous linear functional within the framework of functional analysis.