In this beginner level Photoshop tutorial, which will hardly take 15 minutes, I will teach you’ll to create  an embedded style logo in Photoshop. It’s a easy method in photoshop, dealing with a few layer effects only.

Final Effect

Create a New Document :

Open up your photoshop and create a new document (Ctrl + N). We need a small canvas here, and 550px by 250 px will do the trick for us.

Creating A Background :

We will add Gradient Overlay to the background. But since you know that the background layer is locked by default (Layer 0), we will double click on the layer and rename it to Background. This will unlock the layer for us.

Now go to the Layer Menu and click on Layer Menu -> Layer Styles -> Gradient Overlay. I will use a blue background and a vertical gradient which goes from Dark to Light Blue. After so many attempts, I finalized Dark Blue (#003471) and the Light Blue (#448CCB). You can go off the track and try your own color scheme.

We must have the dark blue to be the dominant color as compared to the light blue. So we move the color midpoint of dark blue to 60%.

Now, to add another effect, select a brush with a large size (I used 500 px). Set the color to white (#FFFFFF). Change the opacity to 60% and the flow to 70%. Create a new layer now and then use the brush on the top-right of the canvas.

Use the typing tool and type your text in the center of the screen now. Make sure it is in the center because it looks kinda odd if not properly aligned.

Now comes the main part : adding text effects to make it look like embedded text. We are going to add Gradient Overlay, Inner Shadow and Drop Shadow. Open Layers -> Layer Styles and go to the Gradient Overlay tab.

Now, we need a blue darker than that of the background. So I am using Dark Blue (#022854). The second color will also be darker than the background but lighter than the color we just selected moments back. So the Light Blue will be (#0F498C). In this, we need to have the light blue more than the darker shade. Set midpoint to 30%.

Next, we go for Inner Shadow effect. Check the box of Inner Shadow and set the angle to 120 degrees. Set the opacity to 50%, Distance at 2px, and size at 3px.

To make the text look consistent, we will add the Drop Shadow. It will be hardly visible but will enhance the looks of the final output. First, change the blend mode to Normal. Since I want it to be small, I will use Distance as 1px and size of 2px. I sampled a few blues and was happy with the output produced by the Light Blue (#A8C9E6). Make sure that the angle here is also 120 degrees.

Yeah, we are done now and the final image should look something like this. You can go in for your own variations, try a few more effects, and Whoa! You will create something that is very unique