Answer:
When versioning is enabled in a list or library, you can store, track, and restore items in a list and files in a library whenever they change. Versioning, combined with other settings, such as checkout, gives you control of the content posted on your site. You can also use versioning to view or restore an old version of a list or library.
Versioning overview
Anyone with permission to manage lists can turn versioning on or off for a list or library. Versioning is available for list items in all default list types—including calendars, issue tracking lists, and custom lists. It is also available for all file types that can be stored in libraries, including Web Part pages. For more info on setting up and using versioning, see Enable and configure versioning for a list or library.
Note: If you are a Microsoft 365 customer, versioning is now turned on by default when you create a new library or list, and it will automatically save the last 500 versions of a document. This will help you prevent losing important documents or data. If you have existing libraries or lists on your site or on your team site that do not have versioning enabled, you can turn versioning on for them at any time.
You can use versioning to:
Track history of a version When versioning is enabled, you can see when an item or file was changed and who changed it. You can also see when properties (information about the file) were changed. For example, if someone changes the due date of a list item, that information appears in the version history. You can also see the comments people make when they check files into libraries.
Restore a previous version If you made a mistake in a current version, if the current version is corrupt, or if you simply like a previous version better, you can replace the current version with a previous one. The restored version becomes the new current version.
View a previous version You can view a previous version without overwriting your current version. If you are viewing version history within a Microsoft Office document, such as a Word or Excel file, you can compare the two versions to determine what the differences are.
If your list or library limits versions, you should make sure that contributors are aware that earlier versions will be deleted when the version limit is reached.
Step-by-step explanation: