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In this video tutorial, Aaron Nace from Phlearn demonstrates how to edit the subject and background separately in Lightroom for desktop. This technique allows for better image editing by working with color contrast and exposure individually. By selecting the masking dialog in Lightroom, users can separate the subject from the background and make adjustments such as adding saturation, contrast, and interest to the subject's face. The tutorial also highlights the new mask options in Lightroom, including select subject and select sky, which offer powerful editing capabilities.