To graph the expression x += (100 - x) * 0.01, a function needs to be defined with time (t) as a parameter. The variable t can be incremented by a small value, delta_t, to represent time progression in the graph. The expression updates the variable x based on its current value, approaching 100 over time. This iterative process allows for the generation of a 2D graph where the x-axis represents time and the y-axis represents the value of x. The discussion emphasizes the importance of defining both time and the iterative update to visualize the behavior of x as it converges towards 100.