1) Open up Window->Preferences->XML->XML Files->Editor

Eclipse Preferences Dialog

2) Check the “Split multiple attributes each on a new line” and adjust other options according to your liking (such as Indent using spaces and Indentation size)

3) Press OK to save the options

Now, all you have to do is press Ctrl-Shift-F or select Source->Format to produce a more readable and enjoyable programming experience like this:

Android XML file