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The tutorial explains how to display items in a drop-down list in alphabetical order, even if the original list is unsorted. It showcases a list of office items and demonstrates three types of drop-down lists. The presenter highlights the technique used to sort the items without manual sorting: by applying a formula to rank the items alphabetically, creating a new sorted list, and using a match formula to arrange the items accordingly. The process allows the user to achieve an organized drop-down list effortlessly.