The Styles and Colors palette provides three panels: the Document styles panel, the Document colors panel, and the Web-safe colors panel.
The Options button displays a pop-up menu of options relevant to the currently selected panel.
Shows a list of permanent and temporary styles in the document:

You can create a new permanent style using the New Style... command on the options pop-up menu.
Permanent styles are shown in bold in the palette. They remain defined even if unused in the document.
Temporary styles are shown in plain text, and are created automatically as you edit text in the document.
Paragraph styles are distinguished from character styles in the palette with a “¶” paragraph symbol in front of their name.
Shows the colors in use in the document, plus a small set of default colors.

You can create a new color using the New Color... command on the options pop-up menu.
Colors shown in bold type are permanent colors, which remain defined even if unused in the document.
Colors in plain text are temporary colors, which are only listed if they are currently applied to an object.
Clicking a color applies it to the attribute specified by the Apply to pop-up menu at the top of the palette.
Shows the 216 Web-safe colors and allows you to select one:
