E3's explanation is the most convoluted way to say the same thing I did I've ever seen.
Look up an explanation from NGK, Bosch, Champion - whoever you like to see a diagram & pictures to explain it better.
The short path between the electrode tip & the plug shell (steel threaded part) of a short insulator gives the most cooling to the tip. A LONG insulator (as E3 mentioned obliquely) means the good insulation of that LONG path to the shell through the insulating porcelain will let the tip stay hot.
If you ever see a VERY cold racing plug, there's almost no porcelain 'tip' at all - an almost flat porcelain between the electrode & the shell.
If those plugs are used in the same engine, one is wrong for the application.
Extended tip works in a larger combustion chamber, the short "flat" one works where there isn't room for an extended tip. if you put an extended tip in an engine that needs a short one, the piston would smash it.
That recessed one would probably need to be a "hotter" plug to avoid fouling when used in the same engine. More likely to misfire if the engine designer wanted a plug that puts the spark further out. Extended tip style won't work when very 'cold" is needed, since the tip stands up beyond the base.
In either case, you can't tell heat range by looking at how long the tip is beyond the base - it's the distance from tip to where the porcelain touches the wall of the plug that counts.
Harder to explain this in words than pictures. The cylinder head is the "cold" part compared to the plug tip. The less insulation between the tip & the head the "colder" the tip will stay. The porcelain is the insulator (electrical & heat) between tip & plug shell, which screws into the head to transfer heat/electricity.
Touch an ice cube with a sheet of paper between it and your hand - feels cold right? That's heat transfer through a small insulator. Do the same using a phone book - virtually no heat transfer, just as there's little through a LONG spark plug insulator.