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In this tutorial, the presenter explains how to display items in a drop-down list in alphabetical order, even if the original list is unsorted. They demonstrate this using a list of office items and three types of drop-down lists. The method involves using a formula to rank the items based on their alphabetical order. After ranking, a new list is created with a match formula to arrange the items alphabetically. The tutorial emphasizes the simplicity of this technique, highlighting that the items are sorted without manual intervention. For more details on the types of lists and their population, the presenter refers viewers to a previous video.