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The video tutorial demonstrates how to edit and run code in VS Code by opening a folder, creating a new file, and utilizing key editing features. Projects in VS Code are organized in folder structures, which can be viewed in the file explorer. To start coding, it is recommended to create a folder for the project and open it in the editor. The tutorial involves creating a new file, writing code using node.js, and utilizing VS Code's support for JavaScript and TypeScript languages. It is essential to have node.js installed to run the code. To check if it is installed, open the terminal and type "node --version". Additionally, a new file named "app.js" is created via the file explorer toolbar.