Difference and analogous colors refer to two concepts in color theory. 'Difference' colors are those that are directly opposite each other on the color wheel, such as red and green. 'Analogous colors', on the other hand, are colors that are next to each other on the color wheel, sharing a common color trait. For example, blue and blue-green are analogous colors. These concepts are used in art, design, and fashion to create harmonious color palettes.