Hi.
So i am new to both Unity and Photoshop. I am trying to make an outlined text with transparent background and import it in to Unity. However, there is something wrong with the text. I have attached the picture below. Please take a look and tell me how can i make the picture appear in Unity exactly like in Windows Photo Viewer.

Here is my photoshop document properties:

Thanks 
I’ve never tried importing a grayscale image into Unity, but I think you should try using regular old RGB and see how that works. Also, I usually use Save for Web and Devices and choose PNG 24 with transparency as my option.
Click the little button that looks like red, green, and blue stripes above the image preview to show the alpha channel. The preview by default shows just the RGB, because it can use the alpha of an image for things other than transparency as well.
It should show up properly if you apply the image to a material or GUI that uses transparency.