The C# Formatting Tool offers C# code formatting, layout arrangement, online C# formatting, and C# code beautification. C# code can appear disorganized due to indentation, spacing, and other formatting issues. By entering messy, compressed, or obfuscated C# code into the input box and clicking the C# Code Formatting button, the tool will format and beautify the code, making it appear more appealing, more readable, and easier to edit.