An orthogonal projection matrix is defined as a matrix that projects vectors onto a subspace while preserving the length of the projection. To prove that such a matrix P is idempotent, one must show that P^2 = P. The discussion highlights the equation A(A^T*A)^-1 A^T and seeks clarification on the relationship between matrix A and matrix P. Understanding the definition of an orthogonal projection matrix is crucial for the proof. The conversation emphasizes the need for a solid grasp of the underlying concepts to successfully demonstrate the idempotency of the projection matrix.