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The message indicates that you have not installed the emulator/device API version chosen to run the application.
In your case you chose an emulator/device with Android 5.1 (Lollipop), for Instantrun to install it is necessary that you install or have installed, on your computer, the API corresponding to that version, in this case the API Level 22.
If you choose the option Install and continue the installation is done automatically.
Click install and continue and install all the SDK needed for your Androidstudio to work. I suggest you check the link : https://developer.android.com/studio/install.html?hl=pt-br
– Fabio Nobre