A nested list is a list within another list, used to display hierarchical information with multiple levels of detail. It's particularly useful in scenarios like file directories, organizational charts, or complex menu structures, where information needs to be broken down into subcategories for clarity and ease of navigation.

When designing nested lists, use visual cues such as indentation, different bullet styles, or varying text styles to clearly indicate different levels within the hierarchy.

For lists with several layers, implementing collapsible sections can greatly enhance usability. It allows users to expand or collapse sections as needed, preventing information overload and making the list more manageable.