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In this Microsoft Word 2016 tutorial, the speaker explains how to display formatting marks, which are non-printing characters that help users see elements like Enter keys, spacebars, and section breaks in a document. To enable formatting marks, navigate to the Home tab, find the paragraph group, and click the Show/Hide button. This feature is particularly beneficial for advanced layout tasks, such as formatting resumes or following APA or MLA guidelines, as it allows users to visualize the document structure without printing the marks themselves.