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The tutorial explains how to insert images into a Google Sheets spreadsheet in three different ways. The first method is to insert the image on top of the spreadsheet, not within a cell. The second method involves placing the image inside a cell. The third method uses a function to add flexibility and dynamic use of images. The tutorial demonstrates the process from scratch on sheet2, starting with going to the Insert menu and selecting Image. Various options are provided, such as taking a snapshot, using a specific web address, or choosing from albums. The tutorial showcases inserting an image from Google Drive for demonstration purposes.