Check Subscription
Subscription plan must be Backer or higher.
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Check Role
User role must be Administrator or Manager.
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Setup custom domain
You must setup Custom domain first (otherwise custom email won't work).
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Navigate to Settings - Branding - Custom email.

Click “Add custom email” option (edit icon near Custom email row) and input "Sender name (From)" and "Email", click "Confirm".

New email will be in table with status “Unverified”.
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Check your inbox
Click on confirmation link from email. Note, that link will be available for 168 hours.
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Setup CNAMEs on your side
After confirm system changes Confirmation status for email to “Confirmed” and shows additional data to setup: 3 records with Type, Host and Value.
You must input these records in your email DNS settings.

Verify
Click “Verify” option.
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Done
If everything correct - system will update the statuses for Email row (Verified) and for nested rows (Authenticated).