The sample also shows the use of a user defined themeable color. Instead of hardcoding a color value this allows users (and themes) to redefine the color in the user settings.
The sample code show the usage of the vscode.[`TextEditor.setDecorations`](https://code.visualstudio.com/api/references/vscode-api#TextEditor.setDecorations) and [`vscode.window.createTextEditorDecorationType`](https://code.visualstudio.com/api/references/vscode-api#window.createTextEditorDecorationType) APIs as well as the `colors` contribution point.