It's basically a parody of a 1950s style health class film, the very same ones I used to watch when I was growing up, only this one is about Mormons and masturbation.
You might think this video is pure silliness, but it actually was inspired by a real pamphlet written by Mark E. Peterson for young LDS males. That pamphlet, along with Boyd K. Packer's 1976 speech/pamphlet "For Young Men Only" are two notorious instruction manuals for young men in the church. Packer's speech from a 1976 General Conference is popularly known as "the little factory" speech. If you read it, you'll understand why.
All I can say is that I'm glad my husband was a convert for a brief time. I can only imagine how many sexual hangups these instructions caused for so many people.
The video is hilarious, though... even though it does come from actual church literature.