You used to be able to do this by right clicking on the psd, and it would only show you the names of the layers under your cursor. Now it shoes all layers, even those that are not under your cursor. I’ve been away from regular Photoshop usage for a while, so I’m wondering if there is another way to do this..
I’ve added a screenshot. Here I am right clicking on the blue bar in the middle, and for example the “header” folder is not underneath the blue bar.
You asked if there is another way to do it. I personally never use right click, because if you have groups it shows a lot of unnecessary layers (it’s not the brightest system). What I do is
Ctrl + left click (no auto select and layer in the drop down menu) and check the layer in the LAYERS panel. If there is something in the way (an effect on top of everything, for example, like a texture or something like that) I block that layer so it won’t get in the way.
It’s not as clear as having the names in a list, but it’s quite effective (the mouse is very precise). I guess it helps if you have good layer names and a good group structure.