How do you apply a text animation in the Timeline panel?

To apply a text animation in the Timeline panel, opening the text layer and clicking on "animate" followed by selecting an option is the correct method. This process allows you to add various properties like position, scale, or rotation to animate specifically defined attributes of the text layer. Once you have clicked on "animate," a menu appears where you can choose different animation options tailored to the text, enabling you to customize the animation settings effectively.

Other methods such as dragging an animation preset onto the text layer or right-clicking to add animation do not provide the same level of customization and control over how the text animates. Double-clicking the text layer typically opens it for editing, but does not lead directly to animation options. Therefore, the first method is the standard practice in After Effects for applying specific text animations within the Timeline.