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What's the difference between `inline` and `inline-block`?

Let's also compare with display: block for completeness sake.

Property block inline-block inline
Size Fills up the width of its parent container. Depends on content. Depends on content.
Positioning Start on a new line and tolerates no HTML elements next to it (except when you add float) Flows along with other content and allows other elements beside it. Flows along with other content and allows other elements beside it.
Can specify width and height Yes Yes No. Will ignore if being set.
Can be aligned with vertical-align No Yes Yes
Margins and paddings All sides respected. All sides respected. Only horizontal sides respected. Vertical sides, if specified, do not affect layout. Vertical space it takes up depends on line-height, even though the border and padding appear visually around the content.
Float - - Becomes like a block element where you can set vertical margins and paddings.