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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. The presenter demonstrates using a formula to rank items based on their alphabetical position and then creates a new list that arranges these items accordingly. A match formula is employed to extract and organize the items into the desired alphabetical format. The tutorial focuses on the simplicity of the technique and highlights how no manual sorting is needed to achieve the sorted drop-down list. Additional resources are available for viewers to learn about different types of drop-down lists.