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In this video tutorial, the presenter demonstrates how to create an underline button hover effect. The effect features an underline that appears from the center when hovering over a button, while different effects emerge from the left and bottom edges. The video progresses with the creator setting up a project folder named "underline_button" in their coding directory using the terminal. They then open the folder in Visual Studio Code, close the welcome page, and generate an HTML boilerplate for an "index.html" file, modifying the title to "underline button" and starting to set up an H1 header.