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In this tutorial, Ryan from Signature Edits demonstrates how to create a highlighted text background in Photoshop. He explains that while changing the text color is straightforward using the character panel, Photoshop lacks an easy option for adding a background highlight to the text. Despite this limitation, Ryan emphasizes that the process is quick and relatively simple. He notes that users cannot change the highlight color or make the highlight permanent, highlighting the challenges faced when trying to achieve this effect in the software.