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These are the core actions in the panel: align layers to an edge or center, distribute them evenly, or equalize the gaps between them. All of them are measured against whatever Align to target is currently selected.

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Align

Moves every selected layer to line up on one edge or center:

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Distribute

Spaces three or more layers so a given edge or center is evenly stepped between the first and last layer:

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Distribute spacing

Instead of evenly spacing an edge or center, these two buttons equalize the empty gap between adjacent layers:
The spacing amount field only takes effect when Align to is set to Key Layer. It’s the exact pixel gap used between the key layer and every other layer, cascading outward in both directions. For every other Align to target, gaps are calculated automatically to fill the available space evenly, and the field is ignored.
Type a value into the spacing field directly, or click the +/- steppers beside it (hold Shift for 10px steps).