Modify option is greyed out

If you want to transform, scale, … the Type Layer please use

Edit > Free Transform

(And depending on the transformations/edits you have in mind you may want to consider converting the Type Layer to a Smart Object first.

Edit: Come to think of it the screenshot seems to indicate that you blurred a copy of the image layer destructively – I recommend using two instances of the same Smart object for the sharp and the blurred version and blurring via Smart Filter/s, that way possible future edits of the image like touch up or color corrections will be reflected in both.) 

Otherwise please explain what you are trying to achieve exactly.