InfluxDB Cloud 2.0's monitoring and alerting feature allows users to set up checks, which are conditional queries that assign a status based on specific conditions, such as low battery levels or high CPU usage. Notifications are then configured to receive alerts when these checks meet their conditions, providing users with real-time insights into their data. To set up this system, users can create checks by building queries and assigning statuses, and then configure notifications using notification endpoints and rules. This allows for customizable alerting that can be tailored to specific needs and data sources.