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From what I understand you've switched your email notification template to text mode and are now attempting to revert it back to html mode.
By default once you convert your email template to text mode you will lose all of your email templates html formatting which is why it appears it then appears similar to plain text. Now, when you switch back html mode even so this does go back to html but because you've converted your notification will still retain the text mode format that you had changed. This leaves you two options to fix it -
(A) You can use the tools after switching back to html mode and rebuild it from scratch.
(B) Delete the email notification and make a new one to rebuild it with the original formatting that you had lost prior to switching it to text mode.