Layers in general only works in expert. the problem is error message in LR. can't get it into elements
open from LR as layers
This option is when you have two or more photos selected in LR and want them in the one PS image. (PSE may be different- I do not have PSE)
Is that what you are trying to achieve? Combine two or more images in the one document?
Or are you just re-opening the one image in PSE? In this case you would "open original" from LR.
With Photoshop, If it was saved with layers, then it will re-open with the same layers when "open original" is used. However if any further editing has been done in LR then LR 'flattens' the layers and opens the photo as a single layer. (again my experience is only in Photoshop 'full' version)