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The video tutorial explains how to hide the placeholder text in content control form fields used for creating forms. The placeholder, displayed in light gray, prompts users to fill in the fields, but can be removed if desired. In the example provided, the presenter demonstrates this process using a plain text form field. First, the presenter enters design mode, highlights the placeholder text along with the period, right-clicks, and opens the font settings. In the font options, they locate a checkbox labeled "hidden" under font effects to hide the placeholder text. Viewers are encouraged to check out the channel's playlist for more on creating fillable forms.