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In the YouTube tutorial, Shannon from Versa Toss Software Training shows how to edit a table of contents in Word. The table of contents is an extra field that can be changed by going to the reference tab and selecting the dropdown arrow for table of contents. Options include changing the built-in style, adding manual entries, and customizing the items shown in the table of contents. Shannon demonstrates how to adjust the table of contents to fit specific needs, such as removing unwanted entries.