Pages is linked to git so each commit on the production branch will deploy to production, and each commit on any other branches will deploy to a unique URL.
I do have to warn you though; Functions on Pages are in beta right now so there's a request limit of 100k per day, although it can be increased on request.
I see the naming more of a "do something functional rather than just serve assets", but I can definitely see the confusion when compared to lambda functions and stuff like that