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Any effect, even a single one using the default settings, is a style once it has been applied. You can even save a single effect which uses the default settings, as a style in order to be able to apply it by simply clicking on its thumbnail in the Styles palette.
Styles palette
However, you will generally want to save multiple effects as a style. Doing so preserves all the settings from each effect’s dialog box and allows you to repeat the combined effect on any other layer.
     If you want to create your own styles and add them to the Styles palette, you need to first apply the style to a layer. The layer’s contents don’t matter; only the effects will be saved as your new style. Once you have the effects combined the way you want them, with all settings for individual effects customized, press Alt, and click the New Item button at the bottom of the Styles palette. Or you can drag the selected layer style (drag the main Effects bar which is above all the individual effects) from the Layers palette into the Styles palette.
Effects bar
A third method of saving a style is to click on an empty area of the Styles palette while your style is selected.
And a fourth method is to choose New Style from the Styles palette menu.
Fifth (!) is to click the New Style icon that appears within many of the individual effects dialog boxes:

You will have the option of saving the Blend Options and/or Layer Effects as part of your style.
New Style dialog box
Please note that styles saved as part of the default Styles preset palette can be lost if you delete your preferences, or choose Reset Styles from the Styles palette menu.

The best, and safest way to save your custom styles is to use the Preset Manager to save them as a set. Go to Edit > Preset Manager.
Preset Manager
Choose Styles from the main menu there. Click on your new style to select it. Shift-click to select any additional styles that you would like to save as a part of your new set. Click on the Save Set button. Give the set a name, and click Save.
     In order to load your new set into the Styles palette, you will need to exit, Photoshop. When you reopen the program, go to the Styles palette menu, and choose your set from the menu. Choose Append in the alert box that appears after that to add your set to the default set, instead of replacing it.
Styles palette menu
  What makes up a typical style? Below, I have deconstructed one of Adobe’s presets. Using this image:

I applied the Sunset Sky style, which is the last one in the default Styles palette. It’s in the third row.

The Layers palette for the image, plus style looked like this.
Layers palette before effects were converted
I then chose Layer > Layer Style > Create Layers to turn the effects into layers. The resulting layers looked like this.
Layers palette after effects were converted
Last, I ungrouped the layers so I could show them to you individually, below. As you can see, ungrouping the layers allows the effects to spread beyond the shapes to which they were applied.
effects ungrouped
 

The top layer contained the Inner Bevel effect’s shadows.
Inner Bevel shadows
The second layer from the top contained the Inner Bevel’s highlights.
Inner Bevel's highlights
The third layer contained a Gradient Fill effect.
gradient fill layer
The fourth layer from the top was the original image layer to which the effects were applied.
original shapes
The fifth layer from the top, which is below the layer to which the effects were applied, contains the Drop Shadow effect.
drop shadow layer
And, below it all is the background layer.
background layer

It’s a lot of fun to do this with any of the preset Styles.

 

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