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This is a really handy production technique more than anything. When we work with layer effects and we combine them with Smart Objects, we can use Color Overlay to change the color of a Smart Object. Here I have a blank canvas and into this I am going to place my Smart Object and I'm going to press Return to accept that. Now we see that we have the Smart Object badge. Now no matter what I do with my Smart Object, I cannot change its color.
See, I've changed my foreground color to red. If I press Alt or Option and my Backspace/Delete, that's not going to work. It's not going to change the color of that Smart Object. But if I were to do this, go to my Layer Style and then come to Color Overlay, I can easily change the color of it right there. Now if I wanted to, I'll just turn that off, you'll see that we have some inner shading on this ampersand. If I want to retain that inner shading then I need to use a blend mode that is going to combine with the existing color. That is going to resolve in a color shift, so it may not be what you want, but you might try using Multiply for example which does keep the existing inner shading on the Smart Object.
So, a handy production technique. Changing the color of a Smart Object using the Color Overlay layer effect.
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