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The tutorial demonstrates how to insert a header in a Word document and change it midway by adding a section break. This allows for formatting headers and footers differently in various parts of the document. To begin, double-click on the header area to enter text. After typing, click outside the header to return to the document. The text entered in the header will be repeated on each page. By adding a section break, the tutorial shows how to create different headers for different sections of the document.