Instead of explaining the layers, it is always better to capture your entire screen with the layers panel open and any collapse layers, expanded.
That said, Instead of create a layer that has a Gaussian filter applied to it, on the layer of the image behind the text, create a mask, fill it with white (it should be already by default) then apply your Gaussian filter to the mask. that will blur the image into the color behind the image.
Or instead of an image you could use a noise and blur the noise. BTW, noise filters can be applied to a mask as well.
If you need more than that, then go ahead and show us your screen.
