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The basic idea behind backlit channel letters is pretty simple, but execution matters a lot. You've got aluminum shells forming letter shapes, with solid fronts that don't let light through. Could be brushed aluminum, painted metal, whatever look you want. Inside each backlit letter, LED strips mount pointing backward at the wall, not forward like regular lit signs. Flip them on and light hits the wall, bounces back, creates that glow around the edges. People call it a halo effect and that's exactly what backlit channel letters do.
Wall color makes or breaks backlit letters though. Got a nice light-colored, smooth wall? Your backlit channel letters will look amazing. Dark brick or rough textured concrete? The wall soaks up light like a sponge and your backlit letters look dim and weak. Sometimes you've gotta install a light-colored backer panel behind backlit letters just to get decent light reflection.
LED positioning inside backlit channel letters separates quality work from cheap garbage. The strips need to sit at exact angles and distances from letter edges. Too close and you get bright spots in your backlit letter halos. Too far and the glow looks dim and patchy. Good manufacturers making backlit letters have this dialed in from years of experience - they know where LEDs go for any size letter. Cheap shops just eyeball it and hope for the best with backlit channel letters.
