The formula S = theta * radius defines the relationship between arc length (S), the angle in radians (theta), and the radius of a circle. The angle in radians is defined as the arc length divided by the radius, making the formula a direct consequence of this definition. There is no mathematical proof for the formula itself since it stems from how radians are defined, similar to how basic arithmetic operations are defined. The discussion emphasizes that asking for a proof is akin to questioning the definitions of fundamental concepts. Understanding this relationship is crucial for grasping the concept of radians and arc length in geometry.