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The tutorial demonstrates how to create drop-down lists in Excel that are linked to a data column without including duplicates. The presenter showcases a dataset with 8,000 rows to illustrate the capability of the system. Initially, using a typical data validation method results in a drop-down list filled with duplicates and exceeding maximum limits. To avoid this, the focus shifts toward generating a unique list for the drop-down. The presenter suggests manual methods, such as inserting rows to prepare for the unique list display while maintaining a consistent width.