Click the "OK" button to create the drop-down list for the selected cell or group of cells on the worksheet, or "Sheet2." Save the workbook. Hover over a cell to reveal the drop-down list box.

To extend your conditional formatting to a new part of the spreadsheet, a new worksheet or even a new workbook, Excel's "Format Painter" feature lets you easily copy conditional formatting.

Here's a quick tip for creating a Microsoft Excel drop down list from another tab.