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The Microsoft Outlook team has released updates for Outlook 2010 and Outlook 2007 that provide Office 365 users with advance password expiration notifications. These notifications will be displayed in a pop-up message (near the system clock) within a certain time period before the password actually expires. The tenant administrator can configure the amount of time before password expiration that the notifications appear. For users whose passwords have already expired, Outlook will display an error message when users try to connect to their mailbox. In both scenarios, Outlook also provides a link (URL) to update passwords via the browser. When users click on those links, they are taken to the Microsoft Online Portal to change or update their passwords.
For more information about this issue, as well as links to the updates for Outlook 2010 and Outlook 2007, see the Password Expiration Notifications in Outlook. This wiki article also contains videos to show the new user experience when the updates are applied.