When to use __() and esc_html_e

Question

Can anyone explain why I would use __() over esc_html_e()

__() esc_html_e

Answer 1

Just like the docs state, esc_html_e() retrieves a translated string, escapes it, and echoes the result. __() returns a translated string. The source for each of these functions makes this crystal clear:

function __( $text, $domain = 'default' ) {
    return translate( $text, $domain );
}

function esc_html_e( $text, $domain = 'default' ) {
    echo esc_html( translate( $text, $domain ) );
}