What is conditional formatting in Excel?

Conditional formatting in Excel is a powerful feature that enables users to apply specific formatting (such as colors, fonts, and styles) to cells based on certain conditions or criteria being met. For instance, you could set a rule that highlights all cells in a data range that exceed a particular value or that are equal to a certain number. This visual cue helps to easily identify trends, outliers, or important data points within a dataset.

This functionality enhances the ability to analyze data by making patterns and critical information more visible at a glance, thereby facilitating better decision-making. Different rules can be layered, and formatting can include a variety of visual effects, such as color scales, icon sets, and data bars, making conditional formatting a versatile tool for data analysis. The other options in the question describe different features or functions in Excel that do not involve applying visual formatting based on conditions.