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In this tutorial, the process of creating multi-level lists in Microsoft Word is demonstrated. The speaker types out information about canines and felines, including different types of dogs and cats. They show how to create a multi-level list by selecting the text, navigating to the "multi-level list" button in the paragraph group, and choosing the desired list format. Initially, all paragraphs are numbered, but the user can customize the list format to fit their preferences.