It's not so bad. I only tried it once on the "melting ice cream" ... 10 shots with 1 minute interval. The feature is under the Rec Menu -> Time Lapse Shot. Once you set the Shooting Interval (1~30 min), Shots (10~60 pictures), press the Shutter to start the sequence. LX-7 will automatically take the pictures based on your settings. It will turn itself off and back on in-between the shots. It's just that you have to "stitch" all the shots in a movie editing software. Basically, what you got are bunches of the Time Lapse Shots, not the Time Lapse Video.
This is what the manual will instruct you .....but this quote from Photography blog ....is much claerer and succinct......The Panasonic Lumix DMC-LX7's new Time Lapse Shot mode automatically starts recording a time lapse sequence once the start time, interval and the number of pictures to shoot are set, although there is a slightly disappointing maximum limit of 60 shots and a minimum limit of 1 minute, which rather curbs the creative potential of this mode.
It does maximum of 60 shots in a time of 1-30 minutes. Yeah, kind of rudemantary and basic, but still a time lapse option. I've yet to use it, as time lapse is not my main focus for the camera. Obviously if you love time lapse photography, perhaps another camera would be a better choice. The camera performs great for what I use it for...fast moving children and indoor shots without having to use a flash all the time. I HATE having to use the flash.