Data Validation - Ignore Blanks Not Working?

[cevors]

Good evening,

I'm trying to create a drop-down that is essentially generated by an array formula. The range is 15 cells, but the list often has less than 15 values. Is there a way to get the drop-down menu to not have a bunch of blank white space at the bottom with a scrollbar for lists that are shorter than 15? In essence, is there a way to 'ignore blanks' even though the cells have formulas in them?

 

[cevors]

The formula is an array formula:
{=IFERROR(INDEX(Lists!$BS$3:$BS$521,SMALL(IF('Loot Council'!$Y$1=Lists!$BR$3:$BR$521,ROW(Lists!$BS$3:$BS$521)-MIN(ROW(Lists!$BS$3:$BS$521))+1,""),ROW()-2)),"")}

So the IFERROR formula displays a blank cell is there is an error -- but is there a way to have the Data Validation ignore the cells that display as blank?

 

[Peter_SSs]

Here is one option for you to consider.
Suppose those 15 cells with formulas are J2:J16, but less actually show values.
In another cell (I have used K1) put this formula. =CELL("Address",J2)&":"&CELL("address",OFFSET(J2,COUNTIF(J2:J16,"?*")-1,0)) (You can hide the column with this formula if you want)
Now, in your Data Validation cell(s), choose for Data Validation: Allow: List -> Source: =INDIRECT($K$1)