Reorder layers within the timeline

You can reorder layers by opening the Update Layer dialog: click the layer name in the timeline diagram (if it's visible) or in the outline of the layers and events below the diagram. The layers are listed under Layer Order, which is collapsed by default, so click that heading first to expand it:

Click and drag the layers up or down to reorder them.

Be sure to click Update Layer when you are finished to save the changes.

The Add Layer dialog has the same Layer Order section, so you can also set a layer's position when you first add it.