Blend modes in digital image editing are used to determine how two Layers are blended into each other. The default blend mode in most applications is simply to hide the lower layer with whatever is present in the top layer. However, as each pixel has a numerical representation, a large number of ways to blend two layers is possible. Note that the top layer is not necessarily called a "layer" in the application. It may be applied with a painting or editing tool.
The new RTSS was extended to support more texture blending modes then the ones you are used to that exists in the fixed pipeline (the enum "LayerBlendOperation" only includes Replace, Add, Multiply, Alpha blend).
Read more on this thread.
Here is how it looks like (jump to a time 1:00 and see me test the new blending modes - one after the other):
Hi, I'm new to ogre but I've worked with Photoshop many years.
I think you would get a better showcase if you reversed the order of the textures you were blending and used a transparent background for the ogre3d logo like a stamp.
A lot of the strengths in different blend modes come out by how the black is blended and without an opacity or strength adjuster it's hard to see the benefits. Generally you don't want the colors blown out and want to retain detail.
Also there are a lot of 'formulas' to simulate effects like a realistic bloom or shadowing that involves stacking 2+ blends.