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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 this using a list of office items and discusses three types of drop-down lists. To accomplish the alphabetical sorting, a simple technique involves using a formula to rank each item's position alphabetically, then creating a new list based on this ranking. A match formula is also used to organize all items accordingly. This process allows for an automatically sorted drop-down list without manual adjustments.
