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The Video Sitemap module works in much the same way as the XML Sitemap module, it generates an XML Sitemap specifically for video content on your site. Search engines use this information to display rich snippet information in search results like the example in the screenshot below.
Video Sitemap module
The settings for the Video Sitemap look very similar to the XML Sitemap module and work in much the same way. When you publish, update or delete a post or page which contains a supported video, the information is automatically added to the video sitemap and submitted to Google and Bing.
You can find full documentation on the XML Sitemap settings here.