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By default when you create a new layer in Photoshop the new layer gets created above the active layer. So here I have a Hugging layer, if I click the New Layer icon of course, just like I said, Layer 1 goes above the current layer. If you want your new layer to go below the active layer, well, there is a trick for that as well. Hold the Command key, Ctrl on Windows, click the New Layer icon and there it goes. It goes below the active layer. If you want to name the new layer as you create it, hold down Command+Option or Ctrl+Alt and click on that New Layer icon and now you get a chance to name, My New Layer.
And when you click OK, that new layer will still be done or created below the active layer.
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