The Better File Link plugin enhances the ability to link to and embed files within Obsidian notes. Users can select files directly from within Obsidian without needing to use external file explorers. The plugin allows customization of file link prefixes, the option to toggle file extension visibility, and the choice between opening the file or its containing folder. It also supports embedding various file types such as images, audio, video, PDFs, and Markdown files. These features make it easier to organize and reference external files in your notes, improving workflow and accessibility.