Final answer:
Setting differs in historical fiction and fantasy literature based on the reality of the world created; historical fiction uses real-world settings while fantasy is completely fictional. However, in both genres, setting is crucial for plot, mood, and themes and contributes significantly to reader immersion.
Step-by-step explanation:
The ways that setting differs in historical fiction and fantasy literature are primarily rooted in the nature of their respective worlds. Historical fiction is set in a real world, with authors often using factual settings. This gives historical fiction authors a framework that will be historically correct while allowing for the creation of purely fictional characters who may interact with historical figures. A notable example of this blend of fact and fiction is Victor Hugo's Les Miserables, which is set against the backdrop of the French Revolution. On the other hand, fantasy literature features settings that are entirely fictional, often including magical elements or unreal creatures, and are only limited by the author's imagination.
Despite these differences, setting in both genres plays a crucial role in shaping the plot, mood, and themes within the narratives. Setting determines the physical elements like geography and weather, the social and cultural context, and also the time period when the story takes place. Both genres use setting to engender specific moods, with Edgar Allan Poe's The Fall of the House of Usher using a dark and oppressive setting to evoke feelings of confinement and depression in the reader, for example. Whether in historical fiction or fantasy, the setting is essential for immersing the reader in the story's world.