Diffuse Color
Diffuse Color acts like a filter through which all diffuse light passes. When light hits the object, the amount of light that's reflected diffusely is determined by the Diffusion channel setting, and the color of that light is set by the Diffuse Color channel.
This graphic shows how diffuse light passes through the Diffuse Color.

When Diffusion is set to a value greater than zero, the Diffuse Color appears wherever the object is hit by direct light. Diffuse Color is the color of diffusely reflected light.

Be careful when using pure constant colors as the Diffuse Color because you may not get the results you're expecting. If you use a pure color, only that color is reflected off the object. So if you're using 100% green, only green light is reflected off the surface. This doesn't cause a problem when the object is hit by white light because there is green in white. However, if you use 100% red light on the object, it will appear black, since there is no green in 100% red, so no light is reflected off the object.
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