Here we're going to say that lattice formation energy is the change in energy when separated gaseous ions combined to form an ionic solid. So here we're going to have sodium ion in its gaseous state, Chloride ion in its gaseous state. Opposite charges causes them to combine together to give us NaCl solid.
Realize here that we're forming bonds, so it is an exothermic reaction. That's why ΔH here is negative. Now in an exothermic reaction, we release energy in order to create this new bond and realize here that the more negative the lattice energy value than the more exothermic the reaction becomes.
So just remember, when we're dealing with lattice formation energy, we have gaseous ions as reactants and they combine together to give us a mole of an ionic solid.