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Deploying components of the Service Mesh by embedding them directly into the application is achieved through the use of code libraries. This method allows developers to integrate specific functionality and services from the service mesh directly into the application codebase. By using code libraries, developers can ensure that the application has direct access to the features of the service mesh, such as traffic management, security, and observability, without needing to set up separate processes or components.

The advantage of this approach is that it simplifies the deployment and operational model, as the necessary components are packaged within the application itself. This can lead to better performance and reduced latency since calls to the service mesh can be made locally within the application rather than over the network.

In contrast, proxies typically work at the network level, handling communication between services rather than being embedded in the application code itself. Service mesh architectures and service meshes refer to broader frameworks and systems for managing service communications, which do not inherently suggest the embedding of functionality within the application code. These methods often rely on an underlying infrastructure that manages service interactions rather than integrating them directly into each application's code.