The Obsidian Attendance plugin allows users to track attendance for events directly within their notes. By using customizable code blocks, users can specify parameters such as the event date, title, and a query to identify possible attendees based on tags, folders, or links. The plugin supports saving attendance states, including options for marking individuals as present, absent, or excused. It offers flexibility in combining and organizing attendee queries, making it suitable for use cases like class attendance or meeting participation.