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The tutorial explains how to block off time on Calendly to prevent people from scheduling meetings during specified hours. By setting up a recurring event, such as a lunch break from 12:00 to 1:00 every weekday, users can reserve that time slot for themselves. This is done by adding the event to their calendar with a specific name and time frame, then selecting the option to repeat it on weekdays. This ensures that others cannot book meetings during that reserved time.