Both vector and pixel layers can be created in the Layers panel that can be used to place objects or lay down pixels in your design. Multiple 'stacked' layers present layer objects or pixels in a logical, ordered and managed manner.
In addition, a sublayer can be created as a child layer of any currently selected layer. Use sublayers for more complex multi-object designs where storing related objects in sublayers under the parent layer might help object management further. Also use them to restrict adjustments and effects to the sublayer only, instead of an entire layer.
Layers or sublayers are created above or inside the currently selected layer, respectively.
As well as vector layers, you can create pixel layers when using pixel-based tools. Some tools and effects can only be applied to pixel layers. In many instances, the layer is created automatically by the tool that you are using or by the Assistant manager if the option is turned on.
The layer will be placed at the top of your layer stack.
The layer will be placed directly above any selected layer or at the top of your layer stack if no layer is selected.