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In this tutorial, the presenter explains how to make cross-references in Microsoft Word. They begin by navigating to the "References" tab and selecting "Cross Reference." The presenter chooses "Figure" and opts for "Only label and number" before inserting it, which adds a clickable reference to "Figure 1." They demonstrate that by holding down the "Ctrl" key while clicking, users can jump to the referenced figure in the document. The presenter mentions that the text can be customized, such as changing it to "Fig. 1." Additionally, they show an alternative method by going to "Insert" and selecting "Cross Reference," where users can choose from different reference types and insertion text, providing further examples.