Editor's note Nov. 23, 2020: Why did we change to a new style of Layers palette/panel?
We found that the older style of layers palette was sometimes quickly dismissed and not often used by customers, some who cited that it took up too much space in the editor window. In order to still offer the useful functionality of this feature—quickly selecting and reordering layers at a glance—we designed a new Layers Panel to take up less space, especially for smaller screens.
The Layers panel shows all the elements you’ve added to your project. The layer on the top of the panel is the element on the top of your design (the green check mark in this example). The layer on the bottom (the blank background layer above) is always the bottom.
To launch/open the Layers panel so it appears on your canvas, click the stack of three squares icon at the lower right of the Editor. Click it again to make it go away, or click the X in the upper right corner of the panel.
Converting the background to a layer
Click the padlock symbol on the background to convert the image to its own layer.
Reordering, flattening, deleting layers
To reorder the layers on the panel: Click and drag a layer up or down the panel to move it forward or backward on your canvas.
To flatten all the layers on the panel: hover on any layer, click the three dots and select Flatten all layers on the pop-up menu.
To delete a layer: Select it by clicking on it in the panel and hit "delete" on your keyboard. Alternately, hover and click the 3 dots then select "Delete layer" on the pop-up menu.
Grouping and ungrouping layers
To group (or flatten two or more layers into a single layer): Select the layers you want to join together by right clicking + selecting layers, or by CMD + Click (Mac) or CTRL + Click (PC) and selecting multiple layers. Click "Group" on the Multiple Layers palette. You can now see all your layers combined into a single layer.
To ungroup a grouped layer, select "Ungroup" on the Group palette.