Understanding VS Code customization features together

There are quite a few customization options in VS Code.

And it’s easy to get them confused.

This guide breaks down how features like custom instructions, prompt files, agent skills, custom agents, and hooks all fit together — and shows how you can use Copilot itself to understand the differences.

Why this gets confusing

All of these features overlap in some way.

They all influence how AI behaves, but they operate at different levels. Without a clear mental model, it’s easy to mix them up or use the wrong one for a task.

Instead of trying to memorize definitions, a better approach is to explore them interactively.

Using Copilot to learn the differences

One of the most effective ways to understand these features is to ask Copilot directly.

For example, you can provide a list of features and ask for a short explanation of each. Copilot will generate concise summaries that help you quickly understand what each one does.

Screenshot of Copilot Chat explaining the differences between VS Code customization features

This gives you a fast, high-level overview without needing to read through multiple docs.

Building a comparison chart

To go deeper, you can ask Copilot to generate a comparison chart.

Screenshot of Copilot Chat generating a comparison chart of VS Code customization features

This chart can include:

what each feature is
when to use it
file types or formats
scope (user, workspace, etc.)

This turns abstract concepts into something you can scan and reference quickly.

Key differences at a glance

Copilot can also highlight the differences between commonly confused features.

For example:

Instructions vs Prompt Files
Instructions vs Custom Agents
Custom Agents vs Skills
Hooks vs everything else

Screenshot of Copilot Chat highlighting key differences between custom instructions, agents, skills, and hooks

These comparisons help clarify how each feature behaves and when it should be used.

Learning through scenarios (quizzes)

Another powerful approach is to quiz yourself.

You can ask Copilot to generate scenario-based questions where you choose the correct feature for a given situation.

Screenshot of Copilot Chat generating scenario-based quiz questions about VS Code customization features

For example, if you want AI to always follow a specific coding style, the correct answer would be custom instructions.

This method reinforces understanding much faster than passive reading.

Creating a reference you can reuse

Once you have summaries, comparisons, and examples, you can take it one step further and consolidate everything into a single reference.

For example, you can ask Copilot to generate an HTML file that includes:

feature explanations
comparison charts
key differences
quizzes

This gives you a reusable resource you can revisit anytime.

Why this approach matters

Instead of switching between documentation pages, you’re using Copilot as an active learning tool.

This approach helps you:

understand concepts faster
see how features relate to each other
build your own reference materials

It turns learning into something interactive instead of passive.

This represents a shift from:

reading documentation → learning with AI

You’re not just consuming information. You’re generating explanations, comparisons, and examples tailored to your understanding.

What’s next

Now that you understand how these features fit together, the next step is applying them in a real project.

There’s no better way to reinforce this than building something and using each feature in context.

Learn more

04/17/2026