The template outlines the activity diagram for a to-do application, detailing the user interactions and workflow from the start to the end of the program. Upon starting the program, the user has the option to search or add a to-do item. If the search is selected, further options are presented to search by date or by name. In the case of adding an item, the user can mark it as either 'Incompleted' or 'Completed'. This diagram serves as a blueprint for developers and designers to understand and implement the user's journey through the application.