Configuration properties in cloud services are simple key-value pairs that tell the service how to behave. First, you define these properties, like maximum instances allowed or whether logging is enabled. Then, you apply this configuration to the service. The service reads each property one by one and adjusts its behavior accordingly. For example, it limits the number of instances to the max_instances value and turns logging on or off based on enable_logging. If a property is missing, the service might use a default or fail to apply that setting. This step-by-step process ensures the service runs exactly as intended by the configuration.