Welcome to the forum
devour!
I just took a quick "glance" at the tutorial that you posted, and I would follow the directions as written. IOW, NO, the author is not asking you to make a new layer. You simply "double click" on the
text layer that you created in Step #1. Then, up pops the "Layer Styles" menu... and from there you will be applying certain effects directly onto your text layer.
Good Luck with your learning process! Just remember to be patient... read carefully... and have fun! And, if you make mistakes... no big deal. You learn even more!!!!