What does Layer Order do?

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Layer order only changes how the layers are displayed in the layer window, it has no effect on how the layers are shown in 3d space.

I answered a similar question earlier today.

Color of groups

Sketchup is a 3d environment, not really designed for 2d work. I’m guessing you have the view set to top and have in parallel projection. When you work like this you need to remember that geometry isn’t layered like it can be in 2d graphic programs, so when you place your flat red group on a flat white background they are both occupying the same location in 3d space, not one on top of the other. As you see in the gif, moving around shows both faces fighting for dominance, known as Z-Fighting. …