The Python code you write gets transformed into a function.  E.g.,
CREATE FUNCTION myfunc(text) RETURNS text
    AS 'return args[0]'
    LANGUAGE 'plpython';
   gets transformed into
def __plpython_procedure_myfunc_23456():
        return args[0]
   where 23456 is the OID of the function.
  
   If you do not provide a return value, Python returns the default
   None which may or may not be what you want.  The
   language module translates Python's None into the
   SQL null value.
  
   The PostgreSQL function parameters are available in
   the global args list.  In the
   myfunc example, args[0] contains
   whatever was passed in as the text argument.  For
   myfunc2(text, integer), args[0]
   would contain the text variable and
   args[1] the integer variable.
  
   The global dictionary SD is available to store
   data between function calls.  This variable is private static data.
   The global dictionary GD is public data,
   available to all Python functions within a session.  Use with care.
  
   Each function gets its own restricted execution object in the
   Python interpreter, so that global data and function arguments from
   myfunc are not available to
   myfunc2.  The exception is the data in the
   GD dictionary, as mentioned above.