The font is most probably a 1bit bitmap stored in a rgba texture, so all pixels are either (FF,FF,FF,FF) or (0,0,0,0).
This way you can control the color and the level of opacity separately (eg using glColor4f).
The blend mode is set to (GL_ONE, GL_ONE_MINUS_SRC_ALPHA).
The front layer seems to be drawn with almost full opacity (alpha=1) and the rear ones with lower alpha (0.5 or less) and darker color.
This way you're always attenuating the background and the colors never saturate.
If you set alpha to 0 you're back at additive blending (used to make the characters flash).
Keep in mind that you'll have to draw the layers back to front to make the blending work.