When programming a show you will find that you frequently use certain positions, colours, etc. The console lets you store these settings so you can recall them at the touch of a button rather than having to find them on the wheels every time. This is very useful for rapid programming and when busking a show.
When you use a palette to record a cue, the console stores a reference to the palette, rather than the actual value. This means that if you program your cues using palettes, you can easily change all the positions in your show just by reprogramming a few palette entries rather than having to reprogram all the cues. This is handy if you are touring and have to cope with different stages or truss heights every show.
Palettes can be nested so you can use palettes in other palettes. If you change a master palette, the changes will track through to all the palettes in which it is used.
Palettes are stored and selected using the buttons in the Colours, Gobos/Beams and Positions windows. You can also store palettes on the grey buttons of preset fader handles (but not on the main playback faders) and on Macro/Executor buttons. You can set a legend for each button so that you know what you're going to get.
If the Colours, Positions, Gobos & Beams windows are not shown, press View/Open then Open Workspace Window then Groups and Palettes to show all three windows.