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Layers
Creating layers is a powerful tool for enhancing digital photos and creating sophisticated graphics.
A layer is an image that is stacked, or layered, on top of another so it can be edited independently. You can duplicate a layer, add text or clip art on separate layers, then reposition each.
Each layer can be adjusted individually until the desired position is achieved. Layers can be turned on and off, or deleted. The stacking order of layers can be changed.
When a multi-layer file is saved as an image file such as a jpeg, the layers merge and resulting image is a single-layer file.
Though it won't be addressed in the associated tutorial, the opacity of layers can be changed from opaque to degrees of transparency. Adjustment layers are used to tweak brightness, color balance, hue and saturation and a whole lot more.
The best way to understand the full power of levels is to begin using them when processing images. Check your software help files for additional information.