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The video tutorial demonstrates how to hide placeholder text in a form created using content control form fields in a document. While this placeholder text appears light-gray to guide users, it can be undesirable in some cases. The tutorial guides viewers through the process, beginning with creating a form that includes a plain text form field. To hide the placeholder text, users should enter design mode, highlight the placeholder text (including the period), right-click, and select the font option. In the font settings, users will find a box labeled "hidden" under font effects, which they can check to conceal the placeholder text. The tutorial encourages viewers to check out the playlist for more on creating fillable forms.