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Make a record active or inactive based on when it was last updated

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In the Youtube-tutorial for Dynamics 365 a consultant shows how you can make a record active or not active based on a date when the form was last updated.

It's shown at this timestamp in the video: https://youtu.be/SubfKExKOgE?t=100

If the form has been updated the last 12 months it's shown as active with a green signal-icon.

My question is how do you setup this functionality? Business rules? And how does he get the green signal icon for the record being active? Thanks in advance


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