Methacholine acts directly on the smooth muscle in the airway wall and makes it tighten. Everyone's airways react if the amount is large enough; what the test measures is how little it takes before yours do. That sensitivity is one of the core features of asthma.
You inhale methacholine in gradually increasing amounts, and lung function is measured after each step. The methacholine test stops as soon as FEV1 has fallen by 20 per cent from the starting value, or when the last step has been given without a fall. You then get airway-opening medication, and the measurement is repeated, so your breathing is back to normal before you leave.
A negative answer (no fall through the whole protocol) speaks strongly against current asthma, and that is the test's most important property. Two conditions must hold for it: you must have had the symptoms in the days around the test, and the medication pause (the one the clinic has agreed with you) must have been kept. A positive answer shows that the airways are hyperreactive, but that is not in itself an asthma diagnosis: hyperreactivity is also seen with hay fever, after an airway infection, in COPD and in smokers. There is a grey zone, where a fall appears only at the highest doses; that result is assessed together with your symptoms, while a fall at low doses carries a great deal of weight.
Methacholine is one of the most sensitive provocation tests in a general asthma work-up. That does not hold for athletes: in athletes the test performs markedly less well, and some with a positive hyperpnoea test have a negative methacholine test. For exercise-related symptoms, one of the indirect tests below is the right choice.