Final answer:
Laurence Sterne's 'Tristram Shandy' is the 18th-century work considered to be a precursor to the stream-of-consciousness novel, playing a significant role in the evolution of narrative techniques before the Modernist era populated by Virginia Woolf and James Joyce.
Step-by-step explanation:
The 18th-century work that is considered a precursor to the stream-of-consciousness novel is Laurence Sterne's 'Tristram Shandy'. This novel, published in several volumes between 1759 and 1767, predates the Modernist movement but exhibits many features characteristic of stream-of-consciousness narrative, such as non-linear progression, digressions, and the intimate portrayal of the protagonist's thought processes.
Stream-of-consciousness as a narrative technique became prominent with Modernist writers in the early 20th century, including Virginia Woolf and James Joyce. These authors moved away from traditional narratives and delved into the thoughts, emotions, and subjective experiences of their characters, which is evident in Woolf's 'Mrs Dalloway' and Joyce's 'Ulysses'.
Despite its burgeoning in the Modernist era, the roots of this literary method are traced back to earlier works by authors like Sterne, showcasing that the evolution of literary genres and techniques is an ongoing process that transcends time periods.