When data validation with list of options is enabled for a cell, it shows the usual drop-down.
To get there select a cell, from menu open Data → Validation, select e.g "List" as the "Enabled" option and fill in a few lines below as options.
Now the cell should have a nice drop-down of options. In Google Sheets once you start typing in such a cell, it opens the dropdown and filters all the results and shows only matching ones.
I find this to be much easier to use, especially with lot of different options.
Thanks for filing Mahfiaz. Set to new.
Created attachment 123924 [details]
Screenshot of Google Sheets
Also worth noting that for performance reasons Google Sheets does case insensitive filtering matching only the START of string. So "ab" would match abacus but not labrador.
(In reply to mahfiaz from comment #3)
> Also worth noting that for performance reasons Google Sheets does case
I doubt that performance is the reason. Cannot imagine there are many validation lists that produce huge amount of data ;)