The LCD and touch-sensor skin is a module that fits right onto the pyboard. It provides a 128x32 pixel, monochrome graphical LCD display, as well as a capacitive touch sensor with 12 channels.
The screen has 128x32 pixels, is monochrome, and has a white backlight that can be turned on and off in software. The touch sensor is the MPR121 12-channel capacitive touch sensor, and there are 4 touch pads on the module (labelled A, B, X and Y), as well as soldering pads bringing out all 12 channels. You can use these soldering pads to connect up to your own touch sensors. The MPR121 is an I2C device.
Note that the LCD screen is not a touch screen.
This module requires some assembly. It comes with male headers (as pictured) and they need to be soldered to the module. See here for a video tutorial on soldering the headers.