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In this video tutorial, the process of removing a watermark in Word is explained. The example provided shows a document with a "draft" watermark, used to indicate its status. Other common watermarks include "confidential," "sample," "urgent," and "do not copy." After completing work on the document and wanting to remove the watermark, one might try double-clicking it, but this method does not work. Instead, the correct approach is to navigate to the "Design" tab, click on the "Watermark" option, select the drop-down arrow, and then choose "Remove Watermark." This effectively removes the watermark from the document.