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In this tutorial, Rupa from Kerbal.com demonstrates how to add annotations to charts in Power BI. There are two types of annotations: directly on the chart and using numbers with corresponding text. To add annotations, you need to use custom visuals like Charcoal Layers. First, get the Charcoal Layers visual from the marketplace and create a line chart using your data set. Then, add annotations by selecting the Charcoal Layers visual and inputting your text. This technique is not available with out-of-the-box visuals, making Charcoal Layers a valuable tool for chart annotation in Power BI.