Robot framework: Differences between suite setup and test setup?

The easiest way to specify a setup or a teardown for test cases in a test case file is using the :setting:Test Setup and :setting:Test Teardown settings in the Setting table. Individual test cases can also have their own setup or teardown. They are defined with the :setting:[Setup] or :setting:[Teardown] settings in the test case table and they override possible :setting:Test Setup and :setting:Test Teardown settings. Having no keyword after a :setting:[Setup] or :setting:[Teardown] setting means having no setup or teardown. It is also possible to use value NONE to indicate that a test has no setup/teardown.

* Settings *

Test Setup Open Application App A

Test Teardown Close Application

* Test Cases *

Default values

[Documentation]    Setup and teardown from setting table

Do Something

Overridden setup

[Documentation]    Own setup, teardown from setting table

[Setup]    Open Application    App B

Do Something

No teardown

[Documentation]    Default setup, no teardown at all

Do Something

[Teardown]

No teardown 2

[Documentation]    Setup and teardown can be disabled also with special value NONE

Do Something

[Teardown]    NONE

Using variables

[Documentation]    Setup and teardown specified using variables

[Setup]    ${SETUP}

Do Something

[Teardown]    ${TEARDOWN}

Taking above example posted by Waman

*** Settings ***
Suite Setup   Setup feature environment
Test Setup    my Test Setup

*** Keyworods ***
Setup feature environment
    <set required environment variables>
    <copy required files and folders>
    <etc, etc .. >

my Test Setup
    <clean up or release previous test resources>
    <reset environment>
    <etc, etc .. >

*** Test Cases ***
First test
    < test steps>

Second test
    [setup]  Testcase specific setup
    < test steps>

Third test
    < test steps>

So here, when you run the whole file (Suite), all the 3 tests will be executed. The order in which they are executed is :

Setup feature environment --> my Test Setup --> First Test --> Testcase specific setup --> Second test --> my Test Setup --> Third test

The [setup] in second test case overrides the [Test Setup]. So 'my Test Setup' is not executed in second test case