You can sort the font list by one of several criteria, in either ascending (A–Z) or descending (Z–A) order.
When you sort fonts by Name, the list is continuous. If you sort by any other criterion (such asType), the list is broken into groups. The groups are sorted in the order chosen, and fonts within each group are listed in ascending alphabetical order.
You can sort using the pop-up menu and sort direction button above the font list, or using the Sort By options on the View menu.
Font list sorted by Name in Ascending order:
Font list sorted by Type in Descending order: