How do I apply a layer in LIE?

I tried to apply a layer in LIE, but failed to do so. I first opened the LIE in  surface for what I was trying to modify (specifically in this case the torso skin), clicked on "+" and picked "new layer"...and then I don't know what to do. A new black layer appeared in  the LIE, but I see no way to browse for my layer and add it. 

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