They can be used to sign individual routes that encircle a city or metropolitan area, where east–west and north–south orientations cannot be applied uniformly.
The labels are also used in select double track rail systems that form a loop, indicating the direction of travel of each line.
In 2009, Interstate 277 in Charlotte, North Carolina, became the first non-contiguous loop route to utilize inner–outer directional signage.
"Inner" and "outer" labels stem from this reasoning, applying the concept of concentric loops to the geographic characteristics of circular road or rail.
Despite the logical benefits and uniformity of inner/outer labeling, many find the concept confusing, especially those in nations where compass directions (e.g., east and west) are by far more commonly used to sign routes (e.g. the United States).