diff --git a/pkg/cmd/extension/command.go b/pkg/cmd/extension/command.go
index 30a7cb508..7ab40b9f1 100644
--- a/pkg/cmd/extension/command.go
+++ b/pkg/cmd/extension/command.go
@@ -293,19 +293,35 @@ func NewCmdExtension(f *cmdutil.Factory) *cobra.Command {
 				Use:   "install <repository>",
 				Short: "Install a gh extension from a repository",
 				Long: heredoc.Docf(`
-					Install a GitHub repository locally as a GitHub CLI extension.
+					Install a GitHub CLI extension from a GitHub repository.
 
-					The repository argument can be specified in %[1]sOWNER/REPO%[1]s format as well as a full URL.
+					The repository argument can be specified in %[1]sOWNER/REPO%[1]s format or as a full repository URL.
 					The URL format is useful when the repository is not hosted on github.com.
 
-					To install an extension in development from the current directory, use %[1]s.%[1]s as the
-					value of the repository argument.
+					To install an in-development extension from a locally cloned repository, use %[1]s.%[1]s as the
+					value of the repository argument. Note the following:
+
+					- After installing an extension from a locally cloned repository, the GitHub CLI will
+					manage this extension as a symbolic link pointing to an executable file with the same
+					name as the repository in the repository's root.
+						- For example, if the repository is named %[1]sgh-foobar%[1]s, the symbolic link will
+						point to %[1]sgh-foobar%[1]s in the extension repository's root.
+					- When executing the extension, the GitHub CLI will run the executable file found
+					by following the symbolic link. If no executable file is found, the extension
+					will fail to execute.
+					- If the extension is precompiled, the executable file must be built manually and placed
+					in the repository's root.
 
 					For the list of available extensions, see <https://github.com/topics/gh-extension>.
 				`, "`"),
 				Example: heredoc.Doc(`
+					# Install an extension from a remote repository hosted on GitHub.com
 					$ gh extension install owner/gh-extension
+
+					# Install an extension from a remote repository on a different GitHub host
 					$ gh extension install https://git.example.com/owner/gh-extension
+
+					# Install an extension from a local repository in the current working directory
 					$ gh extension install .
 				`),
 				Args: cmdutil.MinimumArgs(1, "must specify a repository to install from"),