docs: document color palette hierarchy

references/workspace/customizing-the-appearance-of-your-project.mdx

@@ -27,8 +27,31 @@ You can always come back to this page to change the default palette.
 
 ![](/images/references/workspace/customizing-the-appearance-of-your-project/use-theme.png)
 
-## Use the palette in a chart
+## Color palette hierarchy
 
-The next time you build a chart, it will default to using these colors for the series, unless you override them in the chart config.
+Palettes themselves are always managed at the organization level, but you can pick a specific palette at lower levels to override the default. When a chart is rendered, Lightdash resolves which palette to use by walking up the following chain and stopping at the first override it finds:
 
-![](/images/references/workspace/customizing-the-appearance-of-your-project/use-color-palette-chart.png)
+1. **Embed / SDK** — when a chart is rendered through an embedded dashboard or the React SDK, a palette passed in via the embed token or SDK config takes precedence over every other level, including a per-chart override. See [Embedding with React SDK — Color palettes](/references/react-sdk#color-palettes).
+2. **Chart** — a per-chart palette set from the chart's Series tab (cartesian and pie) or Steps tab (funnel).
+3. **Dashboard** — a palette set on the dashboard from its settings modal. Applies to all tiles in the dashboard unless an individual chart overrides it.
+4. **Space** — a palette set on a space. Nested spaces walk up through their parent spaces, so a child space inherits its nearest ancestor's palette before falling through to the project.
+5. **Project** — a palette set on the project from `Project settings` --> `Appearance`. Applies to every chart in the project unless something below overrides it.
+6. **Organization** — the organization's active palette (set on `Organization settings` --> `Appearance`). This is the final fallback.
+
+In short: **embed/SDK > chart > dashboard > space (and parent spaces) > project > organization**.
+
+### Setting a project-level palette
+
+Project admins can pick one of the org's palettes for a project under `Project settings` --> `Appearance`. The picker is read-only — to add or edit palettes themselves, go to `Organization settings` --> `Appearance`. Charts in the project use the project palette and fall back to the org's active palette when none is set.
+
+### Setting a space-level palette
+
+When creating or editing a space, you can pick a palette underneath the space name. The palette applies to every chart in that space and to any nested spaces below it that don't set their own palette. If you leave it unset, the space inherits from its parent space (when nested) or from the project.
+
+### Setting a dashboard-level palette
+
+Open the dashboard settings modal to pick a palette for a dashboard. Tiles in the dashboard render with the dashboard's chosen palette unless the chart itself sets a per-chart override.
+
+### Setting a chart-level palette
+
+In the chart editor, the palette picker is at the top of the **Series** tab (cartesian and pie charts) and the **Steps** tab (funnel charts). The preview reflects the staged palette before you save; the override only persists when you click **Save changes**.