A negative-space logo hides a second shape inside the empty background of the first — the part of the drawing that isn't drawn at all. Viewers register the larger shape (the figure) first, then, often a beat later, notice the second shape sitting in the gap (the ground).
For the trick to work, the two shapes can't just happen to fit — they have to be engineered to. The usual process is overlaying the outlines of both silhouettes, finding where they naturally share an edge, and nudging one shape at that point, again and again, until a meaningful form (an arrow, a face, a letter) sits exactly in the gap.
Once someone spots it, the "oh, it was there the whole time" moment sticks in memory far longer than a plain mark would. The catch is that the hidden shape can vanish entirely once the logo shrinks or loses color fidelity — a small stamp, a black-and-white fax — so a minimum size has to be specified alongside the mark.
When to use
Use it when you want the brand to be remembered through the moment of discovery. Always document the minimum size below which the hidden shape stops reading.