This menu will appear upon right-clicking over a layer or folder.
Blending Options: This contains all of the blending options available for the current layer. All blending options contained in this section are the same as the Blending Mode drop-down at the top of the layers panel. Find out more in this tutorial: Clover Image Editor: Layer Blend Mode Walkthrough
Bevel and Emboss: This gives the layer a three-dimensional look and feel of either above (poking out towards the viewer) or sunk-into (etched into) the design.
Contour: Contour will allow you to set the overall shape of the bevel. If you check the anti-aliased checkbox, it will smooth out the contour, and the range slider will allow you to set the overall coverage of the bevel that you want this specific contour to apply to.
Texture: Texture will allow you to add a “bump map” or texture to the layer style. A "bump map” makes the surface of the layer appear higher or lower. Kind of like a textured wall, only much more customizable. Here you can add a pattern to the text if you so desire.
Stroke: Stroke produces an outline effect around the layer that you are working on. You can choose this effect to be in line, inside, or outside the layer border. You can also change the size, fill type, blend mode and opacity of the Stroke.
Inner Shadow: Inner Shadow is used to expand depth in a layer. It is most often used on text when using the Bevel or Emboss options.
Inner Glow: Inner Glow adds a “glow” effect to the inside of the layer. You can use this to add depth to the layer.
Satin: The Satin effect creates a silk or satin look, it can also be used to add additional depth.
Color Overlay The Color Overlay effect lets you put an overlay over the currently selected layer. You can adjust the blend and opacity of this effect.
Gradient Overlay: The Gradient Overlay effect allows you to place a gradient over the currently selected layer. You can adjust the blend, opacity gradient intensity, style, angle, and size of this effect.
Pattern Overlay: The Pattern Overlay effect allows you to place a patterned effect over the currently selected layer. You can adjust the blend, opacity, pattern, and scale of this effect.
Outer Glow: The Outer Glow effect adds a “glow” effect outside of the current layer.
Drop Shadow: The Drop Shadow effect allows you to add a shadow underneath the layer to provide a three-dimensional effect to it.
Duplicate Layers: |Ctrl + J| This allows you to duplicate a layer.
Delete: Deletes the currently selected layer.
Rasterize: Rasterize converts the layer into a bitmap and assigns each pixel an RBG color value. When you rasterize a layer, you can no longer edit that layer.
Rasterize Layer Style: Rasterize Layer Style applies a layer style that you added as part of the layer so that you can add the same layer style differently and not replace the previous style even though it is the same effect.
Convert to Shape: Convert to Shape converts the text layers to an image. Once you do this, you will no longer be able to add text to this layer.
Merge Down: |Ctrl + G| Merge Down combines the currently selected layer with the layer below, making them one layer.
Merge Layers: This merges all the layers in one folder and turns them into one layer.