You create a text layer in the Display Manager, much the same way as you create a drawing layer.
This exercise uses the map you edited in Lesson 2: Add Labels to Features.
To create a text layer
You used Save As to save the map with a new name.
Create a text layer from the Display Manager.
Call the text layer "Downtown Redding Text."
The new text layer is added to the Display Manager. The default layer name is Annotation.
Rename the text layer.
To continue this tutorial, go to Exercise 2: Style the text layer.