I am completely new to photoshop and I want to create a transclucent text background to put over an image on a webiste I'm making. I want to create something like the blue grainy/translucent text background like in the image below. I don't want a rectangular block. Please let me know how I can make a background like the one in the image. I'm also open to any other ideas you may have.
I don't see anything translucent about the text in your image. It appears to be white and I can't see any part of the photo through it. To answer your question, though, if you want your text to be semi-transparent, lower the opacity setting in the Layers panel for your Type layer.
If I can understand you request then use Opacity to klower opacity of layer and Color Overlay from Layer Style with blend mode set to Normal. For "grainy" look you can use Pattern Overlay or some filter.