I didn't see the show but I think you are asking about this technique.
You take all of your thread scraps, and even tiny scraps of fabric, and arrange them on top of water soluble stabilizer.
Then, take another layer of water soluble stabilizer and place it on top. Do free motion stitching all over your "sandwich" to catch all the threads below. Wash away your stabilizer (putting some water softener in the water makes it easier/faster to rinse away the stabilizer) and ta-da....one of a kind "lace".
p.s. some people like to add thin braid, ribbons, and yarn. With this technique...anything goes.