Well it is totally subject to how you like to process source material and mix that will be pretty much unique to you, Although you will probably find other audio engineers, mix engineers and these "DJ/Producers" types also.

If you listen to say three different types of guitar pedal, They each offer things the others not and vice versa, Although usually distortion as such is utilized much more discretely when it comes time to mix down a track.

An Overdrive can give a good, Healthy clean boost which drives the amplifier's front-end to naturally breakup and also add in some actual gain/saturation/drive, The amplifier's voice will thicken, A more fluid, liquid-like quality should be felt and also heard if it is a quality pedal, quality amp, well maintained guitar and of course a quality player.

A distortion starts off where overdrive finishes or almost, It has gain/saturation/drive even with a gain pot dialled all the way back, The clipping is harder and the harmonic content different and then a fuzz is a different beast altogether with a square wave signal when pushed hard gain wise.

This is a fine example courtesy of Whampler Pedals:

Now the components involved vary a lot and each delivers in specific areas whereas others do not. The same is true with any gear that break ups, How you use it and where as said all depends on taste.

If you are talking about clipping when used on a master out for a more transparent loudnes that doesn't mess with the transients as much, That all comes down to what you have to work with.

Digital distortions are usually best avoided unless you definitely want such an effect as they are unique, Wave shaping being a strong suit of digital distortion.

There really are no rules really unless you impose them after hearing something that made you say "NOT DOING THAT AGAIN", You know?
Try it all out for yourself by running source material through different types, Be they the real thing or software emulations, You'll still get a great idea of what's what.

I know that was a little vague an answer but I'm not sure I can elaborate further without a more specific, narrower set definition of what you mean when you refer to distortion and what you are wishing to apply it to. Like crossover distortion is not a very pleasant variety on it's own but it is a big part of analogue magic.

All the best your way

This one

and this one are more in-depth

Just in case