I know Magnet Wire has a thin layer of insulation but when i make a coil, can I stack/layer the wire on top of each other or will it just perform the same with normal wire.
Yes, insulated Magnet Wire can be coiled just like regular wire. In fact, that's exactly how every transformer, solenoid, and coil made using 32 AWG magnet wire is made.
If it didn't have insulation, it would short out and not work. The Enamel coating (basically paint/lacquer) is the insulation. You can't use bare wire. Reusing old wire from an old coil, or kinked wire, or really old wire can result in breaks in the insulation, so you must take care that doesn't happen.
I don't know what you mean by perform the same as normal wire. Yes, coils are usually wound with a number of layers of wire. There will be a higher voltage between layers than there is between turns. Also the layers that are covered will reach a higher operating temperature. Those things must must be taken into consideration when selecting the wire. Since the insulation is thin, care must be taken to avoid damaging it.
The only difference between magnet wire and "normal wire" (as you call it) is the insulation, and in particular the thickness of the insulation.
In that respect, magnet wire is BETTER than "normal wire" because you can fit many more turns of wire in a given space if you use magnet wire vs. "normal wire".