Panning sets where a sound sits between your left and right speakers, and Ableton Live gives you two ways to do it. This bit covers Balance mode, the default setting in Live's mixer, using a drum loop as the example.
Turning the Balance dial doesn't actually move the sound anywhere. It shifts volume between the left and right channels, so panning a drum loop hard left just makes it louder on the left side and quieter on the right, until it disappears from the right speaker entirely.
Understanding this volume-based mechanic matters because it explains why Balance panning can feel different from true stereo repositioning, especially with wide or stereo sources. Knowing which mode you're working in helps you predict how elements will actually sit in your mix.