What is the different between padding and margin?

You can edit for every block the padding and margin. This settings influence the placement of a block in relation to the other blocks.
The space can be adjusted separately for all four sides of a block.
1) The padding defines the space between text or image and the frame line of the block.

2) The margin defines the space between the frame line and the actual limit of the block. In contrast to the padding, the margin space doesn't overtake the background color of the block.