You can take a look at this thread here.
The easiest way to get your desired effect is to separate your tilemap into layers, f.e. one background/main layer, and one foreground layer. Everything, that is at the same height as the player can go into the background/main layer, everything, that should be able to be on top of the character, or to cover him, can go into the foreground layer.
In that video i just forgot to turn on subsurface scattering for the tents, so the upper part looks kinda bad. Rest is the same, the tents are still separated into two layers.
PS: all that sorting stuff only works for translucent sprites, and the moment you switch to masked sprites, nothing of that works anymore. But unfortunately, for better lighting, masked sprites work better - f.e. they can cast shadows.
@SupportiveEntity Is there actually any chance, that Epic will finally get orthographic cameras/perspective working with the normal lighting? It´s broken since ages 
and the rest of Paper2D related stuff also needs several updates. Tilemap Editor is still marked as Beta -.-´