Depending on the butterflies environment, a butterfly's colors help by camouflaging it. The patterns on the wings of the insect protects them from larger creatures such as birds, Spiders, or lizards. As a caterpillar their color makes them practically disappear in the background. Many caterpillars are green so they are able to hide by laying on a leaf. Some butterflies can look like twigs, or dead leaves.
Also if a butterfly has evolved very bright and noticeable colors it is often a sign that it is poisonous, or that it is evolved to make other creatures THINK it is poisonous.
In some causes butterfly patters are designed to blend into the surroundings of other butterflies and not to the background. This is done in order for predators to be unable to pick out one butterfly, another example of this is Zebras and their stripes.
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