Bind vs. Insert for Xrefs

When binding an xref to a drawing, you get an option for the "bind type" -- "bind" or "insert". Selecting "bind" prefixes all of the xref named object (layers, linetypes, text/dimension styles) with the xref's name, for example X-1$0$a-wall, where X-1 was the name of the xref and a-wall was the original layer name. Choosing "insert" acts more like you inserted the drawing as a block -- there are no prefixes.