How to change the code in Arduino with another Arduino?

OK. 1st Arduino needs to be running.

I think that the last option that you mentioned might be the one I am looking for. Do all my parameters that I want to change have to be in setup() or can they also be in loop()?

My Arduinos are not yet connected because I don't know which is the best or right way. Maybe through serial connection? Maybe with AVR programmer? No clue.

Please point me in the right direction.