How to Change Opacity (and Use Fill) in Photoshop
Opacity and Fill both affect transparency, but they don’t behave the same. Opacity reduces the visibility of the entire layer, including any layer styles. Fill reduces only the layer’s actual content, leaving styles like drop shadow and glow fully visible.

Step-by-step instructions
Adjust a layer’s Opacity
Select your layer in the Layers panel.
Use the Opacity slider at the top of the Layers panel.
Set a value (e.g., 50%) to reduce the transparency of the entire layer, including effects.
Adjust a layer’s Fill
With the same layer selected, move the Fill slider in the Layers panel.
Set a value (e.g., 50%).
Notice that only the layer’s contents become transparent; any layer styles remain fully visible.
Test with layer styles to see the difference
Add effects: Layer → Layer Style → Drop Shadow and Inner Glow.
Set Opacity to 50% and observe that both content and effects fade.
Set Fill to 50% and observe that content fades while effects stay visible.
Choose the right control for the job
Use Opacity when you want to fade the entire layer and its styles.
Use Fill when you want to keep layer styles strong while fading the underlying artwork.