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In this tutorial, Henry explains the functionality of the notes feature in Upward apps, specifically focusing on how to delete and restore notes. He demonstrates how to access the notes tab, create a new note, and manage existing notes. To delete a note, you simply select it, right-click to open a mini menu, and choose the delete option. A confirmation prompt will appear asking for confirmation to delete or move the note to deleted items. Upon confirmation, the note is marked as deleted. This process allows users to effectively manage their notes within the Upward applications.