Probably depends a bit on the uni, but in my experience:
Are you constantly being watched over and scrutinised for everything you do? Not really. There's usually a couple of lecturers/tutors overseeing everything (and helping when your stuff won't recrystallise or something), and some post-grad students who can help if you're not sure what's going on. Plus there are some lab technicians from whom you can get any extra equipment you need if it's not in your cupboard. We each have a cupboard with beakers etc in, and there are some extra pieces of equipment and machines around the lab. It's usually independent work (very occasionally in pairs or something) but you are allowed to communicate with others! You're not expected to be perfect, but ideally reasonably efficient and tidy and organised – there's usually a bit of pre-lab work/planning needed.
How strict/intense the lab session is probably depends on the lecturers and what you've got to do.
How is it assessed? By the final product or by tutors watching you complete each step of the work?In-lab: final product(s) – appearance, yield etc., any other data relating to what you've made. Also maybe your lab book – whether you've the information needed, results etc. You'll usually be guided on this

Post-lab: there's usually some form of write-up to do – might involve some data analysis, questions, or a lab report – this is usually the majority of the marks for the lab. We sometimes also get a short pre-lab quiz to do.
Don't quite know how things work for 3rd/final year but I do think that groups are a bit smaller – like a supervisor and maybe 5 or 6 or so students. In 1st and 2nd year we've had maybe 30-40 students in the lab but I think that depends on the size of the cohort – if there are loads of people they may split you into a couple of groups.
They're also a bit longer than in school – ours are currently timetabled for 4 hours but I know that some people have longer ones (usually a break for lunch if it's a full-day one) but you can usually leave once you've finished
