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The tutorial explains how to generate a table of contents in a document. The process involves clicking on the table of contents button to launch the dashboard on the right side. Decisions need to be made on the headings to include, based on the styles applied to paragraphs in the document. In the example provided, a table of contents with level one heading is inserted as a native Word table, allowing for updates by pressing F9 or right-clicking. The format of the table of contents is taken from the top styles in the active document.