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In this AutoCAD tutorial, viewers learn how to add text to sketches. To insert single text, the 'text' command is used; after typing 'text' and pressing enter, users can click to define the height and angle (set to zero). Users can also utilize the 'mtext' command for multiple lines of text, selecting points as needed. Text heights can be adjusted by double-clicking the text and setting the desired height. Lastly, the 'mleader' command is introduced, allowing users to add leader text to their drawings. The tutorial emphasizes various methods to manipulate and apply text effectively within AutoCAD.