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How does Docker handle environment variables?

Junior Docker
Quick Answer Environment variables are passed to containers via -e VAR=value or --env-file. Inside the container they appear as normal env vars that the app reads. They're great for config (database URLs, ports, feature flags) but not for sensitive secrets รขโ‚ฌโ€ they show up in docker inspect and process listings.

Answer

Variables passed with -e or Compose are injected at runtime and override image defaults without being stored in layers.
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