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In this Microsoft Word 2016 tutorial, the instructor explains how to display formatting marks, which help visualize non-printing characters in a document. Formatting marks indicate actions such as pressing the Enter key, the spacebar, and adding section or page breaks, although they will not print. To enable formatting marks, navigate to the Home tab, go to the paragraph group, and click the show/hide button. This feature is beneficial for advanced layout tasks, especially when formatting documents like resumes or adhering to APA or MLA guidelines.