Hi Jason,
the duplicated reads are detected by counting how many positions in the genome have exactly 1,2,3, etc reads starting from it. Alignment is considered as duplicate if there was already another alignment starting from the same position detected. The "Duplication Rate Histogram" plot demonstrates the general overview.
The duplication rate value is estimated as
Dup Rate = 1 - USP,
where USP is a proportion of genomic positions having exactly one read starting from it to all the genomic positions that have "at least" one read starting from it.