This is an old question, but I wondered if anybody has found a solution to this yet.
Select country, which then offers you a next field displaying only counties of that country. Yes it could be manual at the moment with taxonomies.
But has Toolset found the solution or is there a 3rd party plugin that resolves this issue?
Thanks
Jay
Is there any documentation that you are following?
Yes but some of the posts saying Toolset are working on it are 6 years old
What's the context for these dropdowns? Do you mean search filters in a View?
You can do something like this with ancestor filters, based on post relationships.
You would create a CPT for Country, a CPT for County, a CPT for City, linked in a chain of one-to-may relationships. You would connect the post type you are actually displaying as the last step in the chain, e.g. as a child post of City posts.
Then create the View to display those posts, and insert a relationship filter. You should see that you can add additional parts of the chain (screenshot; ignore the names, the relationships on the test site used for this are meaningless).