Insertion sort works by taking one element at a time from the unsorted part of the array and inserting it into the correct position in the sorted part. We start from the second element (index 1) and pick it as the key. We compare the key with elements to its left. If elements are larger, we shift them right to make space. When we find the correct spot or reach the start, we insert the key. This repeats until the whole array is sorted. The execution table shows each step, including comparisons, shifts, and insertions, with the array state after each operation. Key variables tracked are i (outer loop index), j (inner loop index), key (current element), and the array itself. Important points include why shifting is used instead of swapping, why the inner loop stops when j < 0, and why insertion happens at arr[j+1]. The quiz questions test understanding of these steps and the behavior of insertion sort on sorted arrays.