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The video tutorial demonstrates how to obtain the column letter in Google Sheets by creating a custom formula. By combining two functions, the address function is used to determine the column letter based on the column number input. The address function syntax includes specifying the row and column numbers, with A representing column 1, B representing column 2, and so on. Additionally, the function incorporates absolute relative mode to determine the mode of the cell reference. This allows for the input of a column number to return the corresponding column letter.