How are lighting schedules applied in EnergyPlus?

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If the Lights object uses this schedule, then the load (W, W/ft2, W/person) will be multiplied by these values. From the I/O document:

Field: Schedule Name

The name of the schedule that modifies the lighting power design level (see Design Level Calculation Method field and related subsequent fields). The schedule values can be any positive number. The electrical input for lighting in a particular timestep is the product of the design level and the value of this schedule in that timestep. If the design level is the maximum lighting power input the schedule should contain values between 0.0 and 1.0.