The newly updated documentation on Netlify's monorepo support provides clear guidance on setting up base directories, configuring deploy notification settings, and recommended setups based on specific tools and project needs. The updates aim to improve the developer experience by addressing issues such as slower build times for Yarn workspaces and making configuration more obvious in the Netlify UI. The documentation team's process involved a cross-team effort to illuminate hidden settings and make the whole process more clear, resulting in a more seamless setup for developers working with monorepos.