Hi!
- The real Gameboy supports three 'layers' - Background, Sprites and Window (rules say only background and sprites)
- Each sprite can be 'above' or 'below' the background layer, so you might even say there are four layers (sprites below BG, BG, sprites above BG, window)
Obviously there's more to it (only 10 sprites per horizontal line for example) but that's probably over the top for your jam's purposes :)