The Reference Desk/References vs. Notes vs. Continuity

I've reached a point where my fuzzy understanding of the distinctions is becoming annoying (and possibly counterproductive). So I'd be grateful for any kind of clarification. I strongly suspect that exact boundaries are hard to describe, but already an approximate definition would help. Actually, more to the point I'd appreciate a practical advice in some recent/upcoming cases.

My perception is that Notes are for out-of-universe things, References are for in-universe objects/individuals and Continuity is for in-universe plot elements. Is this generally correct?

For instance, IMHO Hanging Gardens of Slarvia is clearly a reference in Hacked: it's mentioned for the first time. And the Eye of Orion in the same story is a clear continuity because it was claimed to be the most tranquil place in two other stories. Question: is the mention of Dæmons in the same story a reference or a continuity? There is a picture of one and they are mentioned to be powerful. But they are not really connected with plot elements of other stories? Or does it depend solely on whether a particular referenced story can be identified or not? Although it is always possible to cite the first story they appeared in.

Similarly, IMHO Colonel Sanders is a reference in Weapons of Past Destruction. But it cannot be understood without the out-of-universe connection to the KFC, seemingly belonging to Notes. Can the note be combined with the reference in References? Or should it be moved to Notes completely since it makes no sense purely within DWU? Or should there be separate unrelated note and reference? What is the best practice?