He puts the lotion on his hands.
Bag Balm: Bag meaning cow udder. Cows aren't particularly fond of dry scratchy palms & fingers(and neither are guitar strings when you are trying to record?). Balm meaning stuff that will help make your palms & fingers less dry & scratchy.
I've never tried it(for reducing noise when playing/recording), but perhaps silicone spray? Preferably food grade, I would think. I have used it for various
other applications, slick stuff(the latest?..does great to reduce friction so the windows in your vehicle glide up and down with ease). It may even be the
active ingredient in some of the "fret-ease" type sprays. Not sure. Check warning labels to make sure it is safe. NOT ON THE GUITAR, OR FRETBOARD. Spray a little bit on a paper towel, then handle the paper towel. A little goes a long way. It's just an idea, don't shoot the messenger, or guessenger as the case may be. Disclaimer: Do your own research and make your own decision. Could be brilliant, could be one of the dumbest things you've ever done in your life.