How does a lit shader differ from an unlit shader in Unity?

A lit shader in Unity is designed to interact with lighting in the scene, which allows it to reflect light sources and add depth through shading and shadows. This interaction creates a more dynamic and realistic appearance for objects, as they change visually based on the lighting conditions. In contrast, an unlit shader does not respond to lighting; it appears the same regardless of light sources in the environment, essentially providing a flat appearance without any complex shading effects.

This fundamental difference between the two types of shaders is crucial for developers to understand, as it affects how materials convey visual information in a game. For instance, lit shaders are often used for surfaces that need to look realistic under various lighting scenarios, while unlit shaders are typically utilized for more stylized or flat visuals, such as 2D graphics, UI elements, or specific graphical effects that do not require depth.

Thus, the statement regarding lit shaders reflecting light and adding shadows while unlit shaders ignore light effects accurately encapsulates the functional distinction between the two shader types within Unity.