The Text palette is open on your canvas when you are typing or modifying text on your project. It has three tabs: Adjust, Effects, and Erase. Here is what you can do in each section of the palette.
The adjust section of the Text palette has the following tools:
Color circle: Click the color circle to launch the color picker.
Font drop-down: Click to scroll through and select a font.
Bold/Italic: Select Regular or Bold (if available) from the drop-down, or click the B or I buttons.
Font size: Use the drop-down to select a font size, OR type in a font size, OR use the slider to make text larger or smaller.
Letter spacing: Use the slider to increase or decrease the space between letters.
Line height: Use the slider to increase or decrease the space between two or more lines of text.
Fade: Use the slider to make your text more transparent.
Blend mode: Select a blend mode to make your text blend in differently with the design behind.
Rotate/Flip: Use the circle arrows to rotate the whole text box, or the triangles to flip the text box across a horizontal or vertical line.
More options: From this link, you can “Flatten” your text box which locks in most of the properties, except color, Fade, Blend Mode, and rotate/flip. Click “Revert” in More options to undo the Flatten.
From the Effects tab on the Text palette you can style your text. Check the box for the default effect. Customize by clicking the caret and adjust the effect further to your liking.
Drop Shadow: put a shadow underneath your text for a 3-D effect.
Inner Shadow: put a shadow inside your text for an engraved look.
Outline: Put a color outline around your text.
Curved Text: Curves your text like a rainbow, a “U” shape, or arranges it in a circle.
From the Erase tab in the Text palette you can adjust an eraser’s settings to remove part of your text. Click the Paintbrush tab to paint any erased portion back on.