The “area type tool” is for constraining type within a path, allowing you to create blocks of text in any shape. Start by creating a path with one of the shape tools or the pen tool. For practice, select the “ellipse tool” from the toolbar and click and drag on the stage to create a circle. Next, select the area type tool from the toolbar by holding down the left mouse button on the type tool “T,” revealing each of the type tools.
Click on any of the sides or lines of a path with the area type tool, which will bring up a blinking cursor and turn your path into a text area. Now, any text you type or paste will be constrained by the shape and size of the path.