The Style Text plugin enhances text formatting in Obsidian by allowing users to apply custom CSS styles to selected text. Users can create and manage multiple styles through the plugin settings, which can then be applied via commands, hotkeys, or the context menu. This plugin offers flexibility in formatting with options to customize style order and accessibility. Additionally, a 'Remove Style' command is available to revert unwanted formatting changes easily. The plugin streamlines text styling, making it a valuable tool for personalized note organization and design.