Most documentation on Photoshop Blend Modes stinks. That's why most
users rely on trial and error in order to achieve the effect they want.
Here's to a better understanding of what the blend modes do, and when
to use them:
Some
of the blend modes are designed to make life easier
for artists who wish to hand color comic books and storyboards by placing
flatly-colored cartoony artwork in one layer, and highlights and shadows
in another layer.
Highlights
are usually screened over a drawing.
Shading
is usually multiplied into a drawing.
Overlay
is a blend mode which combines the multiply blend mode with the screen
blend mode. It does so by looking at the image under the artwork. Where
the image under the artwork has pixel values less than "middle
gray" (127 in 8-bit space) the two layers are multiplied. Where
the image under the artwork exceeds middle gray, the two layers are
screened.