The Pretty BibTeX plugin enhances the readability of BibTeX entries in Obsidian by rendering them in a more user-friendly format. Instead of displaying raw BibTeX code in a code block, the plugin formats and colors the entries for better visualization. Users can create a code block with the 'bibtex' language tag, and the plugin will automatically transform it into a more readable format, improving the experience when working with bibliographic data. The rendered output also follows the user's Obsidian accent color for header elements, ensuring consistent styling across the interface.