In Photoshop, using the Character Panel is an easy way to manipulate your text to the exact way you need it. With the Character Panel, you can change the characteristics of the type quickly and easily. You can bold, underline, strike-through, stretch and much more with the Character Panel. Below are a few simple ways to get started using the Character Panel in Photoshop.
First, pull up the character panel under the Window Tab at the top of the screen:
Next, open a new screen and type something you would like to manipulate. Here is our starting point with the character panel open on the right side of the screen:
You can now start manipulating! Make sure the type layer is selected. First we will start with quickly putting bold on the text and making the text all caps without having the retype the text in all caps. Simply click the bold button, then the caps button. (These are circled in red) Easy, right?!!
Need Superscript? Easy! Simple type a 1 next to Hello, highlight the 1, and click the superscript button like so:
Now for some of the more advanced features. Need to space your letters apart or get them closer together? You can do this by using the letter spacer option (Tracking). Play around with it until you get the letters spaced the way you want them.
Next, if you need lines of text spaced closer to together or farther apart, you can do that with the line spacer option (Leading). Simply type a second line and play with the line space options until you get your desired result.
One other feature that is handy is the Vertical Scale option. Simply set a percentage to make the letters shorter or taller.
Hopefully, this gives you a better understanding of how the Character Panel works. There are tons of other options and settings that you can play around with in order to understand the full functionality of the character panel. You can click on any of the images above to see a large view.