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In this HubSpot tutorial by Webdue, Bob explains how to create an email template in HubSpot. Users can save repetitive email content and personalize it for recipients. To create a template, navigate to Conversations, select Templates, and click New Template. You can create a template from scratch, name it, and choose settings for privacy or sharing with users or teams. After selecting a folder for the template, users can enter the email body using formatting options to modify text style, size, and alignment. The tutorial also covers hyperlinking text using the More drop-down menu and inserting images by clicking the image icon, allowing users to adjust image size as needed.