I have a question about the crackme 0x06 reverse engineering challenge

So I've been learning a little bit of reverse engineering. And I've been working on the crackme IOLI suite. So far I've passed the first 6 levels. But on crackme 0x06 I got stuck. The first bit was the same as the last one. Which the solution was that some sequence of numbers had to add up to 16. However there was a separate function called dummy that checked a string LOLO to some pointer in memory. When I hex dumped that portion of memory I saw a bunch of things about my terminal. This is when I knew I couldn't solved it and looked it up. Apparently it needs some environment variables set. Which is accomplished by running it as LOLO= ./crackme0x06 I have no idea what these variables are used for and no idea why typing LOLO= before the name of the executable sets it. Could someone please point me to some resource that explains these things or give me a quick run down on it?

Here is the site where I got the answer from. It is the section crackme0x06