A hydrocele is fluid in the tunica vaginalis around a testis that must itself be examined before anything is cut, because a hydrocele can be a symptom rather than a diagnosis.
The operation shown is the Jaboulay repair: through an anterior scrotal incision the testis is delivered in its tunica, the fluid is drained, and the tunica is everted and closed with a continuous suture behind the testis and cord, loose enough for a little finger to pass along the cord.
Diathermy and haemostasis follow, in a dependent scrotum where gravity works against haemostasis at every layer.