What is the difference between Color and Hue?
Hue and Color sometimes produce similar results, because in both cases the Foreground controls the composite Hue, and the Background determines Value. The difference consists in what layer controls Saturation. In Hue Mode it’s the background, and in Color Mode it’s the foreground. Generally, Hue and Value are the most important parameters in an image, and if Saturation is roughly the same in both layers, it’ll be hard to tell the difference between Hue and Color Mode. You will however certainly be able to tell the difference if one of the layers is grayscale, or if there is a lot of variation in the saturation of a layer. You can also think of it this way; Color Mode is often used for adding color to a grayscale, in which case it’s important that the top layer controls Hue and Saturation, while it must not interfere with the dark/bright values of the background. Hue, on the other hand is often used for changing the existing color of a certain object. In this case you don’t want to chan