Acharya Prashant explains that conditioning is the process where external influences dictate one's internal state, much like a movie viewer whose emotions and physical reactions are controlled by the scenes on the screen. To overcome this conditioning, he suggests two primary paths: the path of knowledge and the path of love. The path of knowledge involves self-observation and the realization that the current state is harmful, leading to a conscious decision to break free. The path of love involves being drawn away from conditioning by something far more beautiful and significant from the outside. He emphasizes that the most effective liberation occurs when both self-awareness and an external calling happen simultaneously.