What Is It
The touchpad can turn any conductive objects such as a finger tip or a banana plug into a trigger to control the circuit.
How It works
The module is composed of 4 touchoads labeled as 1-4. The metal contacts between the touch pad 1 and 2, 3 and 4 are GND (labeled as Earth on board) that we can see in most of the circuits.
Use your finger tip to touch together a touchpad and the GND alongside, or connect the both with a croc clip/4 mm banana plug, then the corresponding switch is turned on. The LED next to it also lights up afterwards, just like pressing down a button.
Real World Analogy
Codecraft
You can find blocks that control the touchpad in the tab Sensing in Codecraft.