What does Word do when you click on the Numbering button?

When you click on the Numbering button in Word, it applies the most recently used number format to the selected text. This feature allows users to quickly and efficiently organize their content by converting plain text into a numbered list, using the specific numbering style that was last applied. If another number format was previously used, clicking the Numbering button again will apply that one, making it a time-saving tool for formatting lists consistently throughout a document.

Considering the other options, creating a new list would typically require the user to designate the text as such, while removing numbering would need a different action like clicking the Numbering button again after it's applied or selecting a specific command to remove the formatting. Finally, displaying the numbering options menu is another feature that allows users to choose from different formats, but it is not what happens simply by clicking the Numbering button itself.