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In this video tutorial, the host demonstrates how to format dates in Excel when they are stored as text. The process begins by navigating to the Data tab and using the 'Text to Columns' feature. After selecting 'Delimited' and proceeding to the next steps, the user should choose the appropriate date format (such as mdy) before finishing the process. This effectively converts the text format into a recognizable date format. To further customize the date appearance, the host shows how to access the 'Format Cells' dialog box using the Ctrl + 1 shortcut and modify the format to display dates in a month and year format (e.g., mmm - YY).