How to Select a Type Mode in Photoshop CS6
The text you create in Photoshop CS6 can be categorized in several different ways, but ultimately, you’re either adding just a little text (such as a word or single line of text) or a lot (maybe a paragraph or so). Accordingly, Photoshop separates type into two modes:
Point type: Use this mode to create a headline or label. You can create point type by clicking in your image and typing; the line appears while you type and grows to whatever length you need (even if that length is wider or taller than your image).
Point type never wraps around to a new line. To wrap to the next line, you must insert a hard return by pressing Enter (Return on the Mac).
Paragraph type: Use this mode to enter longer blocks of text on an image. It’s (unsurprisingly) similar to the kind of type you’re accustomed to working with in word processing programs. In Paragraph mode, all the text goes into a resizable bounding box, and if a line is too long, Photoshop automatically wraps it around to the next line.
The Point type and Paragraph type modes each operate a bit differently, although they share many features and options.