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The video tutorial explains how to hide placeholder text in content control form fields in a form. The placeholder text, displayed in light gray, indicates to users what they should fill in. To remove this text, the presenter demonstrates the process using a plain text form field. First, the user must enter design mode, highlight the placeholder text (including any punctuation), right-click on the highlighted text, and select the font option. Within the font settings, there is an option under font effects labeled 'hidden,' which can be checked to hide the placeholder text. The tutorial encourages viewers to check out additional content on creating fillable forms on the channel.