Motivated by the fact that delay difference inclusions (DDIs) form a rich modeling class that includes, for example, uncertain time-delay systems and certain types of networked control systems, this paper provides a comprehensive collection of Lyapunov methods for DDIs. First, the Lyapunov–Krasovskii approach, which is an extension of the classical Lyapunov theory to time-delay systems, is considered. It is shown that a DDI is KL-stable if and only if it admits a Lyapunov–Krasovskii function (LKF). Second, the Lyapunov–Razumikhin method, which is a type of small-gain approach for time-delay systems, is studied. It is proved that a DDI is KL-stable if it admits a Lyapunov–Razumikhin function (LRF). Moreover, an example of a linear delay difference equation which is globally exponentially stable but does not admit an LRF is provided. Thus, it is established that the existence of an LRF is not a necessary condition for KL-stability of a DDI. Then, it is shown that the existence of an LRF is a sufficient condition for the existence of an LKF and that only under certain additional assumptions is the converse true. Furthermore, it is shown that an LRF induces a family of sets with certain contraction properties that are particular to time-delay systems. On the other hand, an LKF is shown to induce a type of contractive set similar to those induced by a classical Lyapunov function. The class of quadratic candidate functions is used to illustrate the results derived in this paper in terms of both LKFs and LRFs, respectively. Both stability analysis and stabilizing controller synthesis methods for linear DDIs are proposed.