Final answer:
To convert 'Layer 1' to a smart object, right-click the layer in the Layers Panel and select 'Convert to Smart Object'. This action enables non-destructive editing.
Step-by-step explanation:
To convert the layer named Layer 1 to a smart object in a photo editing software like Adobe Photoshop, you need to follow these steps:
- Open your project and locate Layer 1 in the Layers Panel.
- Right-click on Layer 1 to reveal a context menu.
- Select the option 'Convert to Smart Object' from the menu.
Once these steps are completed, Layer 1 will be converted into a smart object, which allows you to apply non-destructive edits and maintain the original image quality.