The Tabout plugin enhances cursor navigation in Obsidian by allowing users to use the Tab key to move the cursor to specific positions within markup environments. This functionality simplifies editing by enabling seamless transitions to desired parts of the text. Users can also define custom rules for specific environments, tailoring the behavior to their needs. Adding rules involves specifying characters to jump to, making the plugin versatile for various markup styles. This feature is especially helpful for improving workflow efficiency in structured editing scenarios.