CORS configuration in Rails works by adding middleware that checks the origin of incoming requests. If the origin matches the allowed list, the server adds special headers to the response. These headers tell the browser it is safe to share the response with the requesting site. If the origin is not allowed, the server sends the response without these headers, so the browser blocks access. The example code uses Rack::Cors middleware to allow requests from https://example.com for GET and POST methods. The execution table shows how requests from allowed and disallowed origins are handled step-by-step, including when headers are added and responses sent. The variable tracker follows key variables like request origin and whether CORS headers were added. Key moments clarify why headers are only added for allowed origins and what happens otherwise. The quiz tests understanding of when headers are added and how changing allowed origins affects behavior.