You can think of layers like folders that contain and organize parcels of animation. You can use layers like folders to compare variations of animation.
When renaming layers, do not use spaces if you plan to export your animation to other software such as Autodesk Maya.
To use layers to compare variations of animation:
In Override mode, the name of the layer displays in bold.
By default, when you the Override layer mode for a new layer, the Passthrough option is active and the layer is actually set to the Override-Passthrough layer mode.
This sets up a layer hierarchy with Folder2_Layer1 parented to Folder1. (See also Parenting and unparenting animation layers).
You now have two sibling layer hierarchies in your animation layer stack, one for Folder1 and one for Take2.
Notice that only the animation you created in the Folder2 hierarchy of layers plays in the scene. Since both the Folder1 and Folder2 parent layers are in Override mode, and Folder2 is higher in the stack, the animation from Folder 2 overrides the animation from Folder1.
The Folder2 layer and its children are automatically muted when you Solo Folder1, letting you view only the animation from Folder1 in your scene.