Just as a heads up; we do have a separate layers story, which is coming soon:
https://adobexd.uservoice.com/forums/353007/suggestions/12924597
I’ll leave this story open for layer comps.
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MrHorse commented
Hi,
I've used the Overlay feature in XD and it does help reduce the number of screens needed. Thank you for that.
However, the Overlay only works Above the Fold. If I have a drop-down menu or anything that requires an overlay then I can't place the Overlaying Layer on the desired location.
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MrHorse commented
Have Layer Comps like Photoshop. In photoshop I wouldn't have to duplicate the whole screen just to show a drop-down menu or pop-ups state. I would have a group layer from each of those different states and have them shown only when activating them in Layer Comps.
This would reduce the number of screens significantly.
To have it prototype the user would simply have to select the state (example: a pop-up) from the Target: Drop-down menu.
Furthermore, while in prototype mode the user could still access/edit states simply by clicking on the on the Layer Panel or a new panel called: States.