Create Hyperlink

The Excel HYPERLINK function returns a hyperlink from a given destination and “friendly name”. You can use HYPERLINK to construct a clickable hyperlink with a formula. The HYPERLINK function can build links to workbook locations, pages on the internet, or to files on network servers.

=HYPERLINK (link_location, [friendly_name])

Have a look in the formula bar. Here you will see the hyperlink function: =HYPERLINK(D6,C6).
D6 is the actual URL and C6 is the Friendly Name. The link is displayed in E6 with the friendly name.

Excel automatically creates a hyperlink if you have set it up to do so. This tip are for those who prefer to do things their own way.

What about an email address:

=HYPERLINK("mailto:"&A1,"email") // link to email address in A1

If you want to add a link to another spreadsheet:
Friendly Name : SHEET2
Target: #SHEET2!A1 // This will link to SHEET 2 and make cell A1 the active cell.
The link will be displayed as SHEET2

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Use the HYPERLINK function to create links to workbook locations, pages on the internet, or to files on network servers.

When a user clicks a cell that contains the HYPERLINK function, Excel will open the file or page specified by link_location. Link_location can be a cell reference or named range, a path to a file stored on a local drive, a path a file on a server using Universal Naming Convention (UNC), or an internet path in Uniform Resource Locator (URL) format.