Photoshop CS6 Tutorial
How to Use the Color Overlay Layer Style in Photoshop
Color Overlay allows you to change the color of all pixels on the target layer. Color Overlay is one of many Layer Styles found in Photoshop.
Open a new document in Photoshop (File > New). Set the size to 500 pixels by 500 pixels at 72 ppi. Set Background Contents to White.
Select the Text tool, click the workspace and add some text. Set the Text Color to a shade of blue.
Select the Text layer in the Layers palette and choose Layer > Layer Style > Color Overlay.
Notice that the Color Overlay heading is Bold and has a checkbox. Selecting any of the heading names will change the effect dialog box on the right side of the panel.
To set the color, click the Color Rectangle.
The Blend Mode options are similar to the layer Blending Modes in Photoshop.
To soften the effect, adjust the Opacity slider. Once you are satisfied, click OK.
You can return to the settings by double-clicking Color Overlay in the Layers panel.