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The video tutorial explains the difference between tint, tone, and shade in color terms, clarifying that these terms are often used incorrectly. Using the modern color wheel, the tutorial demonstrates how to create a tint, tone, and shade from a single hue, in this case, using the example of red. By mixing in white, neutral gray, and black, the result is a tint, tone, and shade of red. To remember the difference between the terms, the tutorial suggests associating "tint" with white, "shade" with black, and "tone" with toning it down. These examples are just some of the possibilities for creating different shades of a color.