One of the most important things you can do to improve the look of your text in Photoshop is adjust the anti-aliasing of the text based on the size the text will be displayed at.

Photoshop text anti-alias
Text anti-aliasing can be found in Photoshop’s Control Bar (usually located at the top of the screen) when you have the text tool selected. You’ll find it just to the right of the point size entry box, as seen in the screenshot above. You can adjust the anti-aliasing by selecting the options in the drop-down menu.

There are four anti-aliasing options, Smooth, Strong, Crisp and Sharp. Which one you use depends on the size of your text.

Photoshop anti-aliased text sample
As you can see in the image above, larger text sizes look better with Smooth or Strong. Smaller text sizes tend to look better with Crisp and Sharp – with tiny text on a website almost always looking best using the Sharp setting. The image doesn’t really show the difference in smaller text as well as I would like, but if you adjust the settings in your own document, you’ll surely see the difference.