Create a development virtualenv with:
virtualenv -p python3 venv
source venv/bin/activate
pip3 install -r requirements.txt
Run discover.py to find the IP of your Nanoleaf device. This can be temperamental, and might take a few tries.
After this, copy the example-manifest.yml file to manifest.yml, and replace the IP address with the discovered IP of your Nanoleaf device.
Next run auth.py, and add the correct token to your manifest. To authenticate you need to hold down the power button of the Nanoleaf for 5-7 seconds, until the LED light on the controller flashes.