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In this YouTube tutorial, the speaker explains how to change the settings of the text editor IDE. They demonstrate how to change the font style, font size, theme, and indentation width in the IDE. By clicking on the "Configure IDE" button, users can access the settings window where they can adjust the font, style, and size, as well as make the text bold or regular. Additionally, users can customize the indentation width for loops and conditional statements. The tutorial provides a step-by-step guide on how to change these settings to suit individual preferences.