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Layers with Relative Positioning.
Relative positioning means elements are relative to their natural position in the document's flow. When you use relative positioning, an element is positioned relative to where it would regularly be. In the below example you see 3 images overlapping. This way you can clearly see that they are on different layers using z-index.
The image in the back is flipped vertically, the image in the middle is flipped horizontally and the image that sits on top of the stack is the original. Of course the name of the 3 images are not the same. In this case: wd-26.jpg, wd-27.jpg and wd-28.jpg
Stacking Images
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