What are the differences between overlay and inset hinges in terms of their installation and functionality?

Overlay hinges are installed on the outside of the cabinet door, while inset hinges are installed on the inside. Overlay hinges allow the door to lay on top of the cabinet frame, while inset hinges are set into the cabinet frame. Functionally, overlay hinges provide a larger door opening angle, while inset hinges offer a more seamless and flush appearance when the door is closed.