Hi fellow rcindian friends...
I need to know why there is need for cycling lipo battery?
Is it similar to battery break-in procedure?

Cycling a LIPO battery pack is not recommended by anybody, since the LIPOs have a limited number of life cycles; and doing a cycling will just decrease that.
But if you're to test the pack, to check the life cycles, then it will be helpful. For normal use, NOT recommended.

The break-in procedure can be related to a NEW gasoline car, where the manufactures say you should not 'overrev' it or flooring it. It will take it's time to smooth it's gears and get to the 'regular' use condition.
In the case of lipo, 'CHARGE AT NO MORE THAN 1C AND DISCHARGE AT NO MORE THAN 5C FOR THE FIRST 5 CYCLES'. But it's no way related to cycling

Well it means you can use the lipo for the first 5 cycles, but have to abide by those above conditions.

But I have read somewhere that if you are not using a lipo for more than a month then you must cycle a lipo is it recommend after that one month interval???

If you're not using your LIPO for more than a few days, then charge/discharge it to the lipo storage voltage. That would be enough.

In some YouTube videos it's being said that Cycling your "New Lipo Battery" for 3 times can extend the life of the battery. I don't know anything about lipo cycling so if anyone could clarify this? Please help me with this topic.

It's mentioned in this video at 0:45 minutes.

Some lipo battery packs need a 'break-in' period, only after which it's true potential could be utilized. He may be talking about that.

idk how it extends your battery life.
From my knowledge and experience on batteries, especially lithium based, what the guy said is BS.

Perhaps, charging it at no more than 1C(or 0.5C) may extend the life drastically.
At the end of the day, it comes down to how you use your pack; how well you handle it; how well you store it; and how well you charge it.

For all Lipo users & new comers to this hobby, here's an interesting guide.

https://hyperion-world.com/en/blog/view/post/a-guide-to-lithium-polymer-batteries

Explains all your doubts regarding Lipos and helps you also take care of them for longer cycle life.

regds