Give each element its own ambient environment so reverbs and delays do not clash
Layering effects means placing each instrument or element in its own artificially created ambient space rather than sending everything to one shared reverb. Just as frequency juggling keeps instruments from clashing in the spectrum, layered ambience keeps their sonic environments from clashing in the depth/space domain: a short dark reverb on one element and a long bright reverb on another let each occupy a distinct pocket of space. Practical rules that keep the layers coherent: layer reverbs by frequency, with the longest reverb being the brightest and the shortest being the darkest; pan reverb returns anywhere other than hard left/right; return some reverbs in mono; get bigness from reverbs and depth from delays (or vice versa); and use a little of the single longest reverb on all major elements to tie the separate environments together into one believable space. The goal is depth and dimension without a single wash of undifferentiated ambience.
Examples
Vocal gets a bright plate; snare gets a short dark room; the whole kit shares a touch of a long hall to unify everything. Bob Bullock uses four to eight reverb/delay sources per mix - short, long, bright, dull - to build one composite environment. Contrast: sending vocal, snare, and guitar to one identical reverb piles them into the same space and muddies depth cues.
Assessment
You have a lead vocal, a snare, and a synth pad that all sound cluttered when fed to one reverb. Describe how you would give each its own ambient environment (relative decay length, brightness, and pan), and name the single move that still ties the three spaces together.