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The video tutorial explains how to hide placeholder text in content control form fields. This placeholder appears in light gray to prompt users for input but can be undesirable in some cases. The presenter demonstrates the process using a form with plain text content control fields. First, users should activate design mode, then highlight the placeholder text, ensuring to include any punctuation. After selection, right-click and choose 'Font' to open the font settings. Finally, under the font effects, there is an option to hide the text, allowing creators to customize the appearance of their forms. The tutorial encourages viewers to check the playlist for more on creating fillable forms.