To connect Daybetter LED lights to the app, download the Magic Home app, plug in and turn on your LED lights, open the app, click on the plus (+) icon, and select the 'Add Device' option. The app will search for devices with Bluetooth or Wi-Fi connectivity. Once your lights are found, click on the connect option. Now you can fully control your Daybetter LED lights through the app, with features like color customization, brightness control, scene settings, group control, voice control integration, and timers.