From kernelnewbies.org:
1.8. Easy local kernel configuration
Most people uses the kernel shipped by distros – and that’s good. But some people like to compile their own kernels from kernel.org, or maybe they like following the Linux development and want to try it. Configuring your own kernel, however, has become a very difficult and tedious task – there’re too many options, and some times userspace software will stop working if you don’t enable some key option. You can use a standard distro .config file, but it takes too much time to compile all the options it enables.
To make the process of configuration easier, a new build target has been added: make localmodconfig. It runs “lsmod” to find all the modules loaded on the current running system. It will read all the Makefiles to map which CONFIG enables a module. It will read the Kconfig files to find the dependencies and selects that may be needed to support a CONFIG. Finally, it reads the .config file and removes any module “=m” that is not needed to enable the currently loaded modules. With this tool, you can strip a distro .config of all the unuseful drivers that are not needed in our machine, and it will take much less time to build the kernel. There’s an additional “make localyesconfig” target, in case you don’t want to use modules and/or initrds.
