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You can find an implementation of this Circuit Breaker solution on GitHub.
A common approach is to implement a circuit breaker inside your function and use DynamoDB to store the circuit breaker state (like Gunnar Grosch’s failure lambda node.js implementation and Jeremy Daly outlines in his AWS Reference Architecture Pattern). The Lambda function will fail before calling the Third-Party API when a failure threshold has been exceeded. This protects the downstream service, but it will not stop AWS Lambda polling the upstream queue and invoking your function. You also have to make changes to lambda function code, specific to the particular Lambda runtime and programming language. The approach introduces a number of DynamoDB requests which could significantly increase costs.