The Text Styles panel shows you which styles are applied to the current selection and gives you the option to apply paragraph and character styles at the caret position or to selected text.
The panel also gives you options for creating new paragraph and character styles, redefining existing styles, or deleting them.
Furthermore, there are options for setting specific text styles as defaults and for importing text styles from other projects.
For more information on using text styles, see Using text styles.
There are several options, available from panel preferences, which allow you to change how styles are displayed in the panel:
The following options are available in the panel: