I have never learned Blender or Photoshop normals.
So I can only search for some tutorials on YOUTUBE or google.
But most of the time I can't understand it because I don't have the basic knowledge.
When I was making Shion's outfit mod, I tried to make a normal map for the first time.
This is my step. (But I think this method is very wrong for BDO. I also hope someone can tell me the correct method.)
1. use Photoshop : Filter > 3d > Generate Normal Map
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2. use GIMP : File > Export As > Compression "BC3nm / DXT5nm"
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3. I don’t know why, but the normal map turned into a translucent red texture.
I don't know if this works for BDO.
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There is a correct way to do this, but I'm not sure if this works for BDO.
Please search for "Baking Normal Maps 2 Methods Blender OR Substance Painter" on YT