Layers

What is a Layer ?
A layer is simply one image stacked on top of another. 

Layers Panel :
Opacity : 0= transparant 100 = fully opaque. press number keys on keyboard to instantly set to multiples of 10, or adjust the slider for an exact amount of transparency on each layer.

Blend Modes : Change these to change the way that the selected layer blends with the layers underneath it. Great for compositing and special effects.

Visibility : If the eye is showing that layer is visible. Click on the eye and the layer will still be there but invisible until we click on the eye again.

Locked : The padlock means that something is locked in the layer. (Also click in the 4 icons in the “lock” next to fill opacity to make certain things editable of locked). Here are the different things that can be locked/unlocked.

Lock all : If the box is checked the layer is totally protected from any editing.
Lock Position : We can make any changes except for moving the image.
Lock Image pixels : We cannot draw on this layer if checked.
Lock transparent : We can paint on this layer but not where it is transparent.

Layer Effects (Styles) : Special effects applied to our image layer. Multiple effects may be used at once.

Add Layer Mask : This is the button to press to add a layer mask to the currently selected layer. Allows us to paint away parts of our layer without damaging our original image.

Layer Groups : A good organizational tool. This puts layers into a folder. We can choose multiple layers and press Cmd/Ctrl+G to put them in a group, or create a group by clicking this icon. Layers can be dragged in or out of groups in the Layers panel.

Create New Layer : Press this icon to create a new layer. Drag an existing layer into this icon to create a duplicate of that layer,

Delete Layer : Drag a layer into this icon to remove it. Or select the layer and then press this icon to get the same result.

Example :