I prefer a more elegant way to filter non-xref layers on the Layer Properties Manager palette than selecting xref and the Invert filter checkbox.

Instead, I create a layer property filter. Set the property filter to filter for layer names ~*|*
Note this is a property filter — not a group filter.

The wild cards in the filter return all layer names that do not contain a vertical pipe character. All xref layers contain a vertical pipe character, so they are excluded and the remaining (non-xref) layers are listed.

Here is the LISP code to create this filter automatically:

     (command "-LAYER" "filter" "N" "P" "All" "NAME==\"~*|*\"" "All Non-Xref Layers" "x" "")

Although the standard Invert filter method is certainly viable, I find the non-xref property filter easier to use. I always add it to my project template files.

Notes from Cadalyst tip reviewer R.K. McSwain: This is a useful tip to help manage your AutoCAD layer list. Although this is similar to tip #3154, this tip also includes a handy LISP statement that you can use to easily create this layer filter in any drawing. This may also give you some knowledge to create other useful layer filters.