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The tutorial explains how to hide placeholder text in content control form fields to improve user experience. It begins by noting the light-gray placeholder text that prompts users to fill in form fields but acknowledges that some users may prefer not to display it. The presenter demonstrates how to hide the placeholder text using a specific example with a plain text form field. By entering design mode and highlighting the placeholder text, including the period, users can right-click and select the font option. In the font settings, there's an option under font effects labeled "hidden," which allows users to conceal the placeholder text.