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We have a program that cannot import Layerfiles from 10.1, but instead changes them to 10.0 layer files. I'm wondering if there is any Layer functionality that is lost in this transition. Right now only a couple of people are using 10.1 in our organization and they have been saving their layer files as 10.0, no issues. But going forward if we all change to 10.1 will this automatic saving to a 10.0 version of a layer file lose anything that we would notice?

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A lot changed between 10.0 and 10.1 so I think this is a question only you can answer based on what you know of your organisation's requirements. Your two people who have been using 10.1 are probably the people best placed to tell you whether anything important has been getting dropped when they share layer files with 10.0 users. –  PolyGeo Aug 14 '13 at 3:32
    
We haven't noticed anything of importance yet, but I was curious if we'd run into issues down the road. Thank you though. Your comment helped me find the information I needed in the Arc 10.1 Help. –  cndnflyr Aug 14 '13 at 13:57

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With the help of PolyGeo's prodding I found the answers I needed here:

http://resources.arcgis.com/en/help/main/10.1/index.html#//006600000253000000

Most of the differences are found when saving MXD's to previous versions, but there are a few things that I expect are lost when saving Layers from 10.0 to 10.1:

-Label expressions are converted to VBScript when saved from 10.1 to 10.0. Not sure if this would effect more complicated expressions. Maybe.

-The Maplex Label engine is default in 10.1, so the labeling in the saved layer will probably change when saved to 10.0. I don't know if turning the Maplex labeling engine on in 10.0 before bringing the Layer in would negate this effect.

-Layers that reference 10.1 geodatabases will not be able to connect to their datasource.

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