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The video tutorial explains how to hide placeholder text in content control form fields when creating forms. This placeholder text typically appears in light gray to prompt users to fill in fields. To remove it, the tutorial demonstrates the process using a plain text form field. Viewers should enter design mode, highlight the placeholder text (including the period), right-click, and select the font option. In the font effects box, there is an option labeled "hidden" that can be checked to hide the placeholder text. The tutorial encourages viewers to check out the channel's playlist for more information on creating fillable forms.