Layiso is one of the icons in the middle of the screen grab you have posted it is in simple terms temporary turn off all layers except the 1 I want. Layuniso turns them all back on. Do layiso and settings I suggest "Off" that may be why you said nothing happening else default is a fade.
Have you pushed the layer manager up to top of screen it will go like you show, grab left bar on the layer window and drag down, I managed to make it look like yours.