A copy of the rendered word is placed behind it at the offset and angle, grown by Spread and softened by Feather. The feather is built as nested vector bands with solved opacities, so it prints as vector rather than a raster blur.
Drag a slider to see what each control does to the type.
Shadow is applied as an Illustrator live effect, so the text stays editable. Change the word, the font, or any slider afterwards, and save the result as a Graphic Style to reuse it.