Certain liquids can emit light when interacting with magnetic fields, but the discussion primarily revolves around using induction to generate light through a simple circuit with an inductor. A basic LED can light up when moved through regions of high magnetic flux density, with sensitivity depending on the inductor's quality. While natural materials like a single piece of wire can serve as inductors, achieving higher sensitivity may require more complex setups, such as wrapping copper wire around an iron cylinder. Self-inductance is an inherent aspect of this process but is generally negligible for detection purposes. The conversation emphasizes the balance between simplicity and sensitivity in creating effective magnetic field detectors.