lhag mthong is
special insight,
vipashyana in Sanskrit. This is the goal of Buddhist
zhi gnas, first you still the mind, and train it to focus on an object
single-pointedly,
ting nge 'dzin. After this you focus your mind on
lhag mthong, unraveling how reality really works. In the Buddhist system it has to do with
emptiness,
stong pa nyid, how to find out how things do not exist from their own side, but they exist dependently.
Now, many commentaries tells to alternate between
zhi gnas and
lhag mthong, if one focuses too much one either one, the mind could get tired or agitated. One needs to avoid these two dangers of meditation.