Playlist deletion refers to the process of removing a playlist and its associated content from a system or platform. In the context of the provided content, the deletion of a playlist involves removing it entirely, including all the underlying video clips. However, not all playlists can be deleted. 'TeamTV generated' playlists mentioned in the content cannot be removed, while other manually created playlists can be deleted if the user has 'trainer' rights. This can be done by clicking on the three dots next to a playlist and selecting the 'delete' option.