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Susan,
If you try them out you'll notice the results to be quite different. The layer blending modes kind of superimpose the image onto whatever background you are you using based on different light settings. The lighter the background the less visible the photo, in fact if you set a photo to overlay on a white background the image will disappear completely. I often find with the overlay mode applied the image often becomes brighter.
Reduction of opacity of course is exactly that, making the image more transparent the more you set the slider. This does give you a little more manual control, but you can also reduce the opacity of an image that has had the overlay mode applied. Try it out and let me know.
Layer Styles are something comepletely different. You will notice under Wiindow in your tool bar you have a layer styles palette. This is where you can locate, save and change your layer styles. You can download them from places such as Adobe studio Exchange or make your own. They are very useful in making elements, and are a means of grouping the individual layer styles found under Image> Adjustments of your toolbar, ie Drop Shadow, Inner Shadow. etc.. So when making a tag for example, instead of creating a new metal style each time, I would save it as a layer style and reapply it each time
Hope this helps
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