You want headings and navigational aids like subheads to stand out on the page. It is also standard to emphasise certain words within body-text, e.g. foreign words and technical terms, such as biological species names (e.g. Ascaris lumbricoides), and also titles of books. When writing by hand, use of capitals or underlining are easy ways to emphasise particular words. However, Word Processors allow better alternatives.
*But NB there may be good reasons for sticking with underlining, and some markers may prefer it! (If you are writing text to go to a professional printshop, they may prefer words intended for final printing in Italics to be shown underlined in the manuscript, as these are easier for the typesetter to spot. However, with the growth of computerised printing technology, this is now less important.)
Just as it is not always wise to justify text, so it is not always a good idea to centre headings, especially long ones. Multiple lines which dont all start at the same point on the left are particularly hard to read. See the second example below.
It is not good to use all capitals for titles, especially long ones, and particularly for titles consisting of essay questions! Use ordinary lower case text like this. And dont capitalise every word, just the first letter of the sentence and proper nouns.
For a short
title, you might use a slightly larger point-size (but not too big! Essays
arent posters). In the example below, centring works well. Note also
judicious use of a little white space to avoid a cramped look.
For long titles, keep it simple. Which of these two would you rather have to look at, at the top of an essay? (Read through the heading of each.)

Subheads can be very useful for
making an essay easier to navigate round by clarifying its structure and,
like paragraph spaces, can break up walls of text. Compare the
examples on this page.
Tip Dont use more than one level of subheadings, without a very good reason. Sub-subheads, and sub-sub-subheads can confuse rather than clarify...
Warning! Teachers may have their own opinions on how appropriate it is to use subheads.
On to references and bibliography