What is the first step to convert a layer to a Smart Object?

To convert a layer to a Smart Object in Photoshop, the first step involves right-clicking the layer in the Layers panel. This action opens a context menu that provides various options related to the selected layer. Among these options, there is a specific choice to convert the layer into a Smart Object.

This process is key because Smart Objects allow for non-destructive editing, which means you can apply transformations and filters without permanently altering the original layer. By right-clicking, you access the necessary command to initiate this conversion quickly and efficiently.

The other methods mentioned may not provide direct access or are not relevant to the task of converting a layer into a Smart Object. For example, navigating through the menu (Layer > Smart Objects) is a valid method, but it is not as immediate as using the right-click option. Dragging the layer or clicking the New Layer button does not pertain to the process of creating Smart Objects and would not achieve the desired outcome.