Inside the world of the play, Lodovico has come to Cyprus in order to bring news from the Duke of Venice. He says that the Duke wants Othello to return to Venice and Cassio to take over command in Cyprus.
From a narrative standpoint, though, Lodovico enters the play at this time to witness the fall into tragedy that the story takes. He sees Othello slap Desdemona (who is Lodovico's kin) and is horrified by his actions and the change in his personality. When he mentions his shock to Iago, Iago suggests that this is the new normal for Othello and that he has seen him do even worse things. In Act 5, Lodovico also witnesses Cassio's screaming and Iago's implication of the stabbed Roderigo as Cassio's assailant.
At the end of the play, Lodovico is able to bring out proof of Iago's treachery in the form of letters Roderigo kept,...
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explaining the intricacies of the plan. After he gives some lectures about the tragedy that has happened, he leaves to take the tale back to Venice, turning from a witness into a storyteller.
In Othello, why does Lodovico come to Cyprus, and how is he involved in Iago's schemes?
I absolutely agree with kwoo1312, but I would add that Lodovico is also critical to the plot because he is a representative of the Duke. Earlier in the play, the Duke of Venice sided with Othello, even against a nobleman (Desdemona's father). As long as the Duke is firmly in Othello's corner, his position is secure. However, if the Duke turns on Othello, then he is far more vulnerable. If Iago wants to totally destroy Othello, he has to undermine that respect. If Othello had not killed Desdemona and they had all gone home to Venice, Lodovico would have carried word to the Duke that Othello had lost all honor and become abusive. That would have been very damaging to Othello.
So, in the play itself, he plays very little role in the schemes. He is the one who finds Roderigo injured and accepts Iago's explanations, but he doesn't advance Iago's plans much at all. However, he could potentially do Othello a lot of damage back home.
Lodovico is a nobleman who has come to deliver letters to Othello with his orders. When Othello sees the orders and sees that Cassio has been appointed in his place, he becomes so enraged that he strikes Desdemona after she is pleased about Cassio's new position. Lodovico witnesses this and is shocked and upset that Othello would strike Desdemona so violently for no apparent reason; therefore, Iago has made him a part of his plan by allowing Lodovico to come witness Othello's jealousy.