Working on images which have multiple layers usually involves some large areas which are
transparent. If you're doing fine detail work, or working on grayscale images, the checkerboard pattern
which Photoshop Elements enforces can become more than a little frustrating.
To disable the pattern, select 'Edit - Preferences - Transparency...' from the menu.
In the dialog box that is displayed, change the 'Grid Size' option to 'None'. This will hide the
pattern while you work.
If you wish to re-enable the pattern afterwards, return here and re-select 'Medium'.
It should be noted that you can also choose to have large and small checkerboard pattern, although this
feature is of questionable usefulness.
Kind Regards
Robert Redwood - Bio
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A page about the Photoshop Transparency Checkerboard