As adverbs the difference between sheer and literally
is that
sheer is (archaic) clean; quite; at once while
literally is (speech act) word for word; not figuratively; not as an idiom or metaphor.
As an adjective sheer
is (textiles) very thin or transparent.
As a noun sheer
is (nautical) the curve of the main deck or gunwale from bow to stern.
As a verb sheer
is (chiefly|nautical) to swerve from a course.