There's been some great posts about #lore lately, and I've been largely staying out of posting about it - instead opting for leaving comments.
That said, I've been getting this itching in my brain as I read the posts because it feels like we're so close to discussing some stuff that I learned way back in high school history class and never thought it'd be useful again.
There were these dudes from Greece who had arguments about how to chronicle history: their names were Thucydides and Herodotus. To be real reductive about their arguments: Thucydides believed in encyclopedic objectivity and sticking to confirmed facts, while Herodotus believed in using story as a way to make history more approachable. Both have merits to their arguments, and the nuance gets used in all sorts of history classes for essay topics.
What does this have to do with lore? Lore at its most basic level is history about a place that doesn't really exist in the real world.
Direct lore, as @videodante likes to call it, can follow either Greek man's school of thought: you can learn a character's history from the story of them ("your father fought in the Clone Wars") or from objective fact ("I am your father").
Indirect lore seems to me to be more directly aligned with Thucydides. It serves to flesh out the world and usually has a goal (maybe a secondary or tertiary goal) of making sure the world is internally consistent with all the other Thucydides-like facts and history. It's the "How do we square Kyber Crystals with Krayt Dragon Pearls?" legacy wookiepedia forum discussion.
I don't have a thesis here, but I wanted to include these Greek guys because they seemed foundational to lore, history, and storytelling, and their reductive representations of their arguments define two ends of a spectrum around how best to convey something. And it so happens that this spectrum seems to be the same one we keep talking about by accident in discussing lore.