Unreal Engine provides two main ways to layer materials and create complex blends between various surface types. Despite their names, Material Layers are different from Layered Materials. By leveraging Material instancing, they allow you to layer and combine textures and properties, enabling the creation of unique materials that replicate how real-world surfaces are made up of different layers.
This method has been around for quite a while, offering greater flexibility for artists and streamlining the process. However, Epic hasn't discussed or promoted it in years, so it's unclear if they plan to revisit it in future engine versions, especially with the current focus on Substrate materials.
The Material Layers system comes with its limitations: the price for flexibility is shader compilations. But if you want to learn more, like Alexandr Kovalchuk, who highlighted this feature in a Reddit post, check out this in-depth video from Sumo Digital that covers its benefits and use case examples:
