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The video tutorial explains how to customize a default form created automatically. It highlights that the form includes standard fields, which can be easily rearranged by clicking and dragging to the desired location. To remove unnecessary fields, such as attachments, users can click the 'X' to delete them. Some fields from the list may not appear by default; if needed, they can be dragged from the list column area onto the form. Additionally, it mentions that certain fields, which are passive and supplied by SharePoint, can be included in the form if desired.