Normally, sprint backlog items will be entered into the Schedule view, or committed to it from the product backlog. The Priority column can then be used to prioritize them. The priority will also decide the order of item in each co-worker's To do list.
Setting item priority in Schedule view using the Priority column
To make Prioritizing items easier, planning can also be done using the Priority view. In this view, item priority is set simply by dragging items up and down. They will inherit the priority of the items surrounding them.
The sprint priority view
Furthermore, the Board view can be configured to use priority either as a column or as a swim lane.
Sprint priority in the board view
You have commands on the toolbar to hide/show past sprints:
The work priority in "Items prioritized" is reflected on the prioritization for the sprint backlog items in the co-workers To do list. Co-workers can also change priority on their items from the To do list (optional):
You can select a custom drop list column as your Sprint priority by going in to Customize project>Priority. Here you have the option to turn off that team member can prioritize from their To do list: