External vs. Defined in Context

External A relation that is “External” is a relation between a sketch entity and something outside of that sketch. This thing can be an edge or vertex within the same model or it can be an edge or vertex within a different model within an assembly.
Defined in Context A relation that is “Defined in Context” is a relation between a sketch entity in one part and some entity in another part. This relation occurs within the context of the assembly.

Entities that are “Defined in Context” are listed as “External” because they have relations outside of the sketch. However, not all “External” relations are “Defined in Context” because they may be relations within the same part file.