The UPDATE statement changes values in multiple columns for rows that meet the WHERE condition. In the example, employees in the Marketing department have their salary increased by 10% and their department changed to Sales. The execution table shows each row checked, whether it meets the condition, and if it is updated. Only rows 101 and 103 meet the condition and are updated. The variable tracker shows how salary and department values change step-by-step. Key moments clarify why only some rows update and that only specified columns change. The quiz tests understanding of the updated values, condition checks, and effects of removing the WHERE clause.