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In this Excel tutorial, the instructor demonstrates how to create a simple cell reference. To reference cell A1 in cell C1, you type an equal sign (=) followed by A1, allowing the content of A1 to appear in C1. The tutorial then explains how to reference a cell across different worksheets. For example, when on Sheet2, if you want to display the content of A1 (which says "Welcome") in Sheet1, you type an equal sign, the worksheet name (Sheet2), an exclamation mark, and the cell reference (A1). Thus, the formula would be `=Sheet2!A1`. Changes made to A1 in Sheet2 will automatically update in Sheet1.