In this video, Young demonstrates how to create an IAM policy to control access to Amazon EC2 resources using tags. He explains the process of setting up tag-based access control for EC2 instances, which allows for more granular and flexible management of permissions. The video covers the steps to create and apply IAM policies that leverage resource tags, enabling organizations to implement fine-grained access controls based on specific EC2 instance attributes. This approach enhances security and simplifies resource management in AWS environments.