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It changes to Edit Puppet mode.
Nodes and Inspector can be only edited in this mode.
Animation list and Timeline can't be edited in this mode.
On this panel, you can set ambient light color. The effect will be shown if you enable post processing.
On parameter you can set parameter to use to animation or to make physics.
You can set layers behaviour on parameter.
Configuration of parameter.
You can origanize your puppet layers here.
Group layers you did on drawing program won't be inherited.
There you can group layer by many types of nodes:
(Check this page for basic concept)
You can edit Node proprieties on Inspector.
Nodes that have Transform: Layer (from drawing Software), simple Node, simple Physics, Camera, Mask, Composite and MeshGroup.
Nodes that have Drawable: Layer (from drawing Software), Mask, Composite and MeshGroup.
Layer (from drawing Software) is only Node that has Part.
Nodes that have Tint: Layer (from drawing Software) and Composite.
Nodes that have Blending: Layer (from drawing Software) and Composite.
You can check blending list here.
Nodes that have Opacity: Layer (from drawing Software) and Composite.
Nodes that has Masks: Layer (from drawing Software) and Composite.
Simple Physics is only Node that has simplePhysics.
Camera is only Node that has Camera.
MeshGroup is only Node that has Meshgroup.
You can see list of all things you did.
By selecting one of them, you can undo until that point of work.