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In this tutorial, Chatter from Code Workshop teaches how to create an ICO file, which is a simple process. The video covers the steps to convert an image into an ICO file using a 24-bit bitmap format. It is important to name the file and save it as a dot ICO. Chatter mentions that the term "convert" may not be used correctly but emphasizes the simplicity of the process. Keep in mind that the original file will be retained when creating an ICO file.