The code uses face recognition technology to mark attendance of recognized individuals. It loads images from a specified directory, encodes them, and compares them with the real-time face recognition from the computer's camera. If a match is found, it records the name and timestamp of the person in an attendance.csv file. The program also displays the webcam footage with rectangles around the faces of recognized individuals and their names. The program runs until the user terminates it by pressing 'q'.