How is a text layer the same or different from other layers in Photoshop?

It is the same because as every other layer - text layer can contains transparent areas and can be applied layer style to it including different level of transparency from 0-100%, any of available blend modes, layer mask can be applied or clipping mask to clip content inside letter forms like for example image. Text layer can be moved, grouped, locked or converted to Smart Object as any other layer. Different from regular layer is because contains vector data so you can change size, color and even color of individual characters without any penalty, also font and font style can be changed (shape or design of letters). Other interesting things to do with text layer is to convert characters to shapes and to work with each individual character as separate shape (to change its shape, rotate it, enlarge, move, skew, distort and so on).