Add text to your project with the Text Tool.

How To: Add text
How To: Scale text
https://www.loom.com/share/a2afb10aa35844c9a7a6034085ab325a
The inherit alpha button is a modifier for Blend Modes and when activated, it will apply a mask of the base layer's shape to all layers above it. This is most commonly used to add effects and visuals to text.

