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Using Data Layers, Actors can be dynamically loaded and unloaded in the Level Editor to help manage complex levels. They can be enabled using Blueprints to drive gameplay and are an important tool for managing asset streaming in a World Partition workflow.
Data Layers serves as a replacement for the previous Layers system found in older versions of Unreal Engine.
World Partition - Data Layers in Unreal Engine | Unreal Engine 5.0 Documentation