If your course has enabled Microsoft Office 365 and Assignment Enhancements, you can upload a file from your Microsoft OneDrive for an assignment.

Like other file upload submissions, files uploaded from Office 365 are uploaded into your Canvas user files submissions folder.

Canvas accepts Microsoft Word, Microsoft PowerPoint, Microsoft Excel, and PDF types.

Notes:

• If the assignment you are accessing displays differently, Assignment Enhancements may not be enabled in your course or your instructor may not have used a supported assignment type. Please view this guide for more information.
• If the Office 365 tab is not available in your submission, your institution has not enabled this feature.
• Canvas will require you to authorize access to your OneDrive account.
• You can only attach one file for your submission.
• When Office 365 files are uploaded as a submission, changes later made to the file in OneDrive will not be updated in the submission.
• Assignment Enhancements does not support the following assignment types: No Submission, Group Assignments, and Peer Reviews.
• Canvas does not support file uploads larger than 5 GB.

Canvas tutorial below:

https://community.canvaslms.com/t5/Student-Guide/How-do-I-submit-a-Microsoft-Office-365-file-as-an-assignment/ta-p/416674