Block Style, Hanging, and Indented
Block style is when all lines of text are aligned with the left margin. None of the lines are indented. Block style is commonly used when formatting business letters and memos.
Hanging indent is when all of the lines are indented except for the first line. The first line is aligned with the left margin and each additional line is indented. It is commonly used when sighting bibliography sources.
An indented paragraph is when the first line of a paragraph is the only one indented. For the indented paragraph style you use the tab key to indent. This format is commonly used for reports.