You can configure logging for your Rails application to forward logs to Datadog and track behavior with faceted search, custom processing pipelines, and log-based alerting. To start, install the Datadog Agent on your host and create a new directory and YAML file in the Agent's conf.d directory to store the configuration necessary to set up Rails log collection. Restart the Agent and check its status after adding the necessary configuration. Once set up, you can explore your logs in the Log Explorer, perform searches based on facets, create custom processing pipelines, and set up alerting for specific events. With Datadog's log management tools and built-in Ruby integration, you can collect, manage, and monitor your Rails application logs in one place, correlating data with logs and metrics from every part of your infrastructure.