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This is a fairly simple effect with only a few options to set. It is often used as part of a style to set the color that will be applied as the layer’s fill.
     If you look at the deconstructed Layers palette at the bottom of the page, you will see that the Gradient Overlay consists of a filled layer, blend mode Normal, and Opacity 100 %, added above the layer the effect is applied to. It is grouped with that layer, and thus clipped, which means it has its visibility limited to the outlines of that layer’s content.
gradient overlay dialog box
Settings, listed from the top down, are as follows.

  • Blend Mode - All the usual offerings.
  • Opacity - Reduce this if you want to allow the image the overlay is applied to to show through the gradient.
  • Gradient - Click on the little tiny down arrow to the right of the gradient thumbnail to access the pop-up palette and choose a gradient from the presets. To create your own custom gradient on the spot, click on the gradient thumbnail.
  • Reverse - Switches the colors in the gradient. Whatever was the end color will become the start color, and vice versa.
  • Style - Linear, radial, reflected, angle, or diamond. Same as the gradient tool.
  • Align with Layer - This will align the gradient to the layer contents rather than the overall image contents. For example if you are applying the Gradient Overlay effect to a layer which only contains one small object far from the image’s center, this will scale the gradient to fit within the small object, center it within the object, and link it to the layer so that the gradient moves with the layer.
  • Angle - Drag on the line within the circle to change the direction from which the gradient is applied across the image.
    change Angle
    You can also drag directly on the image with the cursor to change both angle, and the portion of the gradient that shows within the layer.
  • Scale - This changes the size of the gradient. Larger settings cause the colored gradations to be wider, and more gradual. Smaller settings do the reverse. Very small settings cause the gradient to complete within the limits of the image, leaving the end color to fill the remaining area. Using the Preview thumbnail from the Gradient Overlay’s dialog box, here are two different Scale settings. First, a scale setting of 62.
    gradient overlay scale setting of 62
    And, next, a scale setting of 28.
    gradient overlay scale setting of 28

In the example below, I used the Spectrum gradient, with these settings.
gradient overlay example settings


And, here is the Layers palette after the effect was deconstructed by choosing Layer > Layer Style > Create Layers.
deconstructed gradient overlay Layers palette
  Go to Pattern Overlay
 
 

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