Blending mode behavior in image edit mode

Blending modes behave differently depending on whether you are in object mode or image edit mode. In object mode, a blending mode affects the selected object.

In image edit mode, blending mode behaves in these ways:

A blending mode affects the floating selection of pixels.
A blending mode affects the brushes and fills of subsequently drawn pixels when there is not a floating selection.

For more information on blending modes, see Understanding blending modes.