As the name and description implies, the player starts with only one life and all the bloons (except for MOAB-class Bloons and their children) are Camo Bloons. Additionally, in the online version, rounds normally consisting of Camo Bloons will have Camo Regrowth Bloons instead.
Ninja Monkeys upgraded at least 1/0 are very helpful, as they can see Camo bloons and throw projectiles quickly.
Right after the update, there was a glitch after playing this and starting a regular game, all the bloons were Camo Bloons! This would increase total difficulty of the game. However this was fixed in an upcoming update, so this glitch fix is not true yet.
As per normal, MOAB-Class Bloons and the bloons which spawn from them will neither be Camo Bloons nor Regrowth Bloons.