UDT Terminology
Many terms are frequently used when discussing UDTs:
Definition
A Definition represents the structure of a UDT. Definitions don't run, so Tags inside of a Definition won't poll or subscribe to anything. Rather they represent a Tag structure which Instances will inherit from. Changes made to a Definition are automatically applied to any Instances of that Definition.
In the Tag Browser, UDT Definitions are always located under the UDT Definitions tab.

Instances
Instances are running copies of a Definition. All Instances have a "Parent Type", which is the definition that the Instance is inheriting from. The structure of an Instance is defined by its parent Definition, so you can not add new Members to an Instance. However, you can override the values on properties in any Member.
In the Tag Browser, UDT Instances can be found under the Tags tab, and are signified by either a plain white Tag
icon, or a Tag
icon with a vertical stripe. Furthermore, you can expand the UDT Instance and find the members (other Tags) in the UDT.

Parameters
Parameters are user created properties that can be used to create parameterized data templates. Parameters are configured on Definitions, and their values can be overridden on individual Instances. You can replace values on a member in a UDT with a reference to a parameter, allowing for For example, if a data type consists of three OPC Tags that only differ by a number in the path, you can use a parameter for the "base address", allowing instances to be created with only one setting.
Root Node
The top level item in a UDT.
Members
Members are the Tags inside of a data type or instance. Members are always under a Root Node. Members can be standard Tag types or an instance of another UDT.

Override
Instances are copies of a Definition, but in some cases you may wish to change the value of a property on a particular member (Tag) in a UDT instance. This is called Overriding the property, allowing the property to have a value that deviates from the Definition.