Does time capsule works with Lion?

I am new to Mac after I had an HP damaged, and decided to move on to Mac.  As I do not want to repeat the experience of losing all the information for not backing it up, I was told that I could make backups with time Machine and Time Capsule.  I would like to check if it is possible, and if Time Capsule will work with Lion.  I have a 2011 MacBook Pro.  Thanks for your comments.

Yes, although you don't necessarily need a Time Capsule.
That's a combination wireless router and hard drive, and was designed specifically to receive wireless Time Machine backups, and is quite handy for that.
But you can also back up to an external HD -- much faster and more reliable (not to mention less expensive), but less convenient for laptop users, having to connect it when you want to do backups.
You might want to review the Time Machine Tutorial, and perhaps browse Time Machine - Frequently Asked Questions.

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