Simple definition
Group Policy inheritance determines how GPO settings from parent containers apply to child objects.
Purpose and use
GPO inheritance organizes policies received by users and computers according to their Active Directory location.
How does it work?
Processing includes local, site, domain and organizational-unit levels, with precedence and exceptions such as enforced links and inheritance blocking.
Example and verification
To explain a setting, inspect effective results and winning policies together with filters and application permissions.
Points to watch
Inheritance blocking normally does not defeat enforced links. A GPO's name or apparent location alone does not establish application.
In short
Results depend on ordering, links, filters and the actual user or computer context being processed.