Its easier to give an example of formatted file than to the unformatted file, but let me try to explain;
Unformatted file is the one that is not following any rule or the rule is unknown. So copying some text from a webpage might be an example; as the webpage follows some rule that was known to its creator, but for a user its unformatted as (s)he don't know the rule.
Now because of the unformatted nature, the file is difficult to handle by an automated (or manual) system.
Unformatted or formatted; both type of files can have special characters.