I know of a few editors out there that do parse and format SQL ... with mixed results from my experience ... but I am still looking for one with a complete set of features for this myself. So do share if you have had good experiences there yourself.

But there are a few SQL Central and DBISQL features that you might find helpful.

The Editor in DBISQL has a number of options around formatting that can be useful. You can tell the editor how to treat tabbing, indentation (automatic and style), and make 'text completion' do a number of useful things. The same is true for SQL Central, when editting procedures/views/functions/events, you can make these changes to the editor there (see Customize Editor).

On an individual statement basis, the Query Editor will take individual queries and block out the separate clauses for you to some extent.

I have found the "Translate to Watcom-SQL" SQL Central's editor feature somewhat helpful in this regard too (for PSM language objects at least) but I miss that as a immediate feature in DBISQL. {though you can call the underlying WATCOMSQL( sql-statement-string ) system function if you want to brave passing your .SQL scripts through that)

But a full and proper SQL Pretty Printer (as this type of facility was once known as), alas, we are lacking that feature currently.