Reformat XML in Visual Studio 2010

If you want to leave your right hand free to do something else, you can use Ctrl+E, Ctrl+D.

Not sure how this is different from Ctrl+K, Ctrl+D.

Not 100% sure about VS2010, but in VS2015 if you copy and paste a long string of XML into an .XML document, it will automatically reformat it.

("Format Document" is usually the way to go, just mentioning another option.)

Yes you can :

Edit > Advanced > Format document (Ctrl+K Ctrl+D)