From Outlook, select “File” > “Options“.

Select “Mail” on the left pane, then choose “Spelling and Autocorrect…” button.

Outlook breaks up the screen into different tabs and so many check-boxes. Select the one the corresponds to the Autocorrect or Autoformat setting you would like to change:

• AutoFormat
  • Apply Built-in Heading styles, automatic bulleted lists, list styles, other paragraph styles.
  • Replace – Straight quotes with smart quotes, ordinals, fractions, hyphens, bold, italic, internet, and network paths.
• AutoCorrect
  • Initial capitals.
  • Capitalize first letter of sentences.
  • Capitalize first letter of table cells.
  • Capitalize names of days.
  • Correct accidental usage of Caps Lock key.
• AutoFormat As You Type
  • Replace as you type – Straight quotes, fractions, bold and italic, internet and network paths, ordinals, hyphens.
  • Apply as you type – Bulleted lists, border lines, heading styles, numbered lists, tables.
• Automatically as you type
  • Format list item like one before, left and first indent.