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In this tutorial, the video explains how to hide placeholder text displayed in light gray when using content control form fields to create a form. The presenter demonstrates on a form using plain text form fields. To hide the placeholder text, viewers are instructed to enter design mode, highlight the placeholder text (including the period), right-click, and select the font option. In the font settings, there is a checkbox labeled "hidden" under font effects that can be selected to achieve this. The video encourages viewers to check out related content on the channel for additional guidance on creating fillable forms.