The List Navigation directive facilitates navigation within lists. To use it, the parent element must include the axListNavigation directive, and each child element should have the axListNavigationItem directive. This directive supports navigation through list items using the Tab, Arrow Down, and Arrow Up keys. It also features an onPressEnterOrSpace event, which triggers when the user presses Enter or Space, returning the active index item so that actions can be performed on it. This enables efficient and intuitive navigation and interaction within lists.