I ask this question, because I have layers that I would like overlapping eachother, such as backgrounds (for parallaxing).
Do you accomplish this by setting the sorting layers? Or do you use the Z axis to bring objects to front or back.
You use sorting layers. Also, order in layer (for sorting within the same layer).
False.
You don’t need to touch the Z axis. But you can if you want to. The Z axis is perfectly fine for sorting.
The other key benefit of using the z axis is visualisation. If your z axis matches your sorting layers you can switch to 3D view in the inspector and look at your various layers in 3D. I find separating layers by between 50 to 100 on the z axis to be effective.