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In this AutoCAD basic tutorial, the instructor explains how to add text to a sketch. To add single text, use the "Text" command, click a point for height, set the angle to zero, and type your text. For multiple text entries, use the "MText" command, click to define the area, and input your text. You can adjust text height by double-clicking the text and changing its properties. Lastly, the "MLEADER" command is introduced for adding text with leaders, requiring the selection of a starting point and adjusting parameters as needed. The tutorial emphasizes the functionality and versatility of different text commands in AutoCAD.