Hi Ben,
Just to add to Luke's explanation, discrete coloring is useful when your category of interest is categorical, e.g. Treatment A, Treatment B, Treatment C. In this case, your samples are going to form three distinct groups (either Treatment A, B, or C).
Continuous coloring is useful if your category of interest is numerical, e.g. describes a gradient such as pH, temperature, depth, time, etc.. In this case, the continuous coloring provides a color gradient from red to blue, which matches up with the numeric range found in your category of interest (e.g. pH).
Hope this helps,
Jai