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So to group layers, you need to select two or more layers in a layer list and you can do that by clicking then holding down the shift key and clicking a second or multiple layers and then going down to a Layer toolbar and clicking on the Group Selected Layers icon or you can go to the top menu and select Layers > New > Group Layer or you can right click on your selections and select Group Selected Layers. A folder icon will appear and as you can see the selected layers have been indented slightly so that we know that they belong to the layer with the folder and you can use this arrow on the side to collapse or uncollapse the contents of the group. A group layer is indicated by a black bar on the side and of course you can always rename the folder.