This scene is set in the Palace, and starts with Lady Macbeth realising that becoming Queen has not brought her the satisfaction she thought it would, and that becoming Queen by force (murder) and not proper means has left the position feeling empty and worthless. She expresses this when she says “Nought’s had, all’s spent, Where our desire is got without content: ‘Tis safer to be that which we destroy, Than by destruction dwell in doubtful joy.”
Then Macbeth enters, blabbing on about having “scotched the snake, not kill it.” meaning there is no peace because Banquo is still alive and their position is not secure. He even starts saying the dead Duncan is lucky, because he no longer has to live with the troubles of this world, in particular, the fears and nightmares that haunt Macbeth. Lady Macbeth says to “sleek over his rugged looks” and act jolly and happy for the guests at the party tonight, and Macbeth agrees. Then Lady Macbeth wonders why he is so worried and he reveals his worries “There are scorpions in my mind”and reminds her Banquo and Fleance are still alive, and Lady Macbeth says he wont live forever…. Macbeth then starts going on about evil deeds and attacks. Lady Macbeth wants to know what hes going to do to Banquo and Fleance, but Macbeth doesn’t tell her, only tells the sun to scarf it eyes, and that invisible hand should rip the bond that keeps him pale (scared). This means to destroy the friendship, or “bond” with Banquo so he will be free to kill him without worrying. Everyone knows this wont really make him happy and worry free, as killing your best friend is not something he could forget about ever, so I think it will just lead him into a even worse frame of mind, making him indifferent to, or unable to stop the evil deeds he will do.
Another important thing is that Lady Macbeth has lost lots of her ambition, and is starting to realise being a Queen without honour is not so great. Also Macbeth has sort of switched character with Lady Macbeth, so HE is now the one making evil plans of his own accord- not even sharing them with Lady Macbeth!