A drop-down list in Microsoft Excel can improve data entry efficiency, but at the same time restrict data entry to a specific set of items or to the data in the drop-down list.
Steps
Method 1 of 2: Excel 2013

Step 1. Open the Excel file in which you want to create the dropdown list

Step 2. Select blank or create a new sheet

Step 3. Enter the list of items to be displayed in the drop-down list
Each item is entered in a separate cell on each new row. For example, if you create a drop-down list with sports names, enter baseball in A1, basketball in A2, football in A3, and so on.

Step 4. Select the range of cells that contains all the entered elements

Step 5. Go to the "Insert" tab
Select "Name" and then select "Set".

Step 6. Enter a name for the items in the Name field and click OK
This name is for reference only and will not appear in the table.

Step 7. Click on the cell where you want to create the dropdown list

Step 8. Go to the Data tab and select Data Validation from the Data Tools group
The "Validate Input Values" window opens.

Step 9. Go to the "Options" tab
Select "List" from the "Data Type" drop-down menu.

Step 10. In the line "Source" enter the equal sign and the name of your drop-down list
For example, if your dropdown is called Sports, enter = Sports.

Step 11. Check the box next to "List of acceptable values"

Step 12. Check the box next to "Ignore empty cells" if you want users to be able to select zero items from the drop-down list

Step 13. Click on the "Error Message" tab

Step 14. Check the box next to "Display error message"
This option prevents users from entering incorrect data.

Step 15. Click OK
The dropdown list appears in the spreadsheet.
Method 2 of 2: Excel 2010, 2007, 2003

Step 1. Open the Excel file in which you want to create the dropdown list

Step 2. Select blank or create a new sheet

Step 3. Enter the list of items to be displayed in the drop-down list
Each item is entered in a separate cell on each new row. For example, if you create a drop-down list with fruit names, enter "apple" in cell A1, "banana" in cell A2, "blueberries" in cell A3, and so on.

Step 4. Select the range of cells that contains all the entered elements

Step 5. Click in the Name field to the left of the formula bar

Step 6. In the "Name" field, enter a name for the drop-down list describing the entered items, and then press Enter
This name is for reference only and will not appear in the table.

Step 7. Click on the cell where you want to create the dropdown list

Step 8. Go to the Data tab and select Data Validation from the Data Tools group
The "Validate Input Values" window opens.

Step 9. Go to the "Options" tab

Step 10. Select "List" from the "Data Type" dropdown menu

Step 11. In the line "Source" enter an equal sign and the name of your drop-down list
For example, if your dropdown is called "Fruit", enter "= Fruit".

Step 12. Check the box next to "List of acceptable values"

Step 13. Check the box next to "Ignore blank cells" if you want users to be able to select zero items from the drop-down list

Step 14. Click the Error Message tab

Step 15. Check the box next to "Display error message"
This option prevents users from entering incorrect data.

Step 16. Click OK
The dropdown list appears in the spreadsheet.
Advice
- Enter the items in the order you want them to appear in the dropdown list. For example, enter items alphabetically to make the list more user-friendly.
- After you finish creating the dropdown, open it to ensure that all of the items you entered are present. In some cases, you will need to expand the cell in order to display all the elements correctly.