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In this tutorial, Henry explains the functionality of notes in Upward apps, particularly focusing on how to delete and restore them. He navigates to the notes tab, where users can create, read, edit, and delete notes. To delete a note, users need to select it, right-click to access a mini-menu, and then choose the delete option. A confirmation prompt appears, asking if the user is sure they want to delete the note, which they can confirm to move it to the deleted items. The video emphasizes these steps for managing notes effectively.