The outer block is called the parent and the inner block is called the child.
It's literally one block container inside another block container as you can see in the source code.
The space between the two borders is the margin outside the child block PLUS the padding inside the parent block.
By default, both blocks expand horizontally as much as they can. Also by default, both blocks shrink vertically as much as they can.
A previous lesson used the "margin auto" technique to center a block in the browser's viewport.
The same technique can be used to center a child block within a parent block.
The child is constrained by the parent, so its left/right margins are auto calculated to center it WITHIN the confines of the parent.
This cool looking "telescoping" display box has 3 stripes around the outside.
You could construct this by nesting blocks 3 deep like just above, removing the padding, and using 3 different border colors.
However, this nested structure is only 2 blocks deep!
Outer Stripe - border of parent block
Middle Stripe - padding inside parent block (color comes from background color of the parent block)
Inner Stripe - border of child block
Of course, the lightest grey on the inside is the background color of the child block.