Text effects on Photoshop also referred to as Styles, allow you to add textures, color schemes, and fonts variations. The Text Effects take font further than just creating some swirls and then flourishes with text types, editing, and styles. 

There are actually different styles of using Photoshop. There are default layer styles and the new styles that are grouped into four sets. These sets include Fur, Fabric, Natural, and Basics. Every set has its respective folder in the Styles panel, and every layer style has its thumbnail.  These different styles can be used in different illustrations, artworks, and image editing.