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You don't necessarily need to distinguish the two. If you write, for example, Dan stared out of the window of the classroom. A green park spread outside. Tulips and Hyacinths were in full bloom...
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#4: Attribution notice removed
Source: https://writers.stackexchange.com/a/36315 License name: CC BY-SA 3.0 License URL: https://creativecommons.org/licenses/by-sa/3.0/
#3: Attribution notice added
Source: https://writers.stackexchange.com/a/36315 License name: CC BY-SA 3.0 License URL: https://creativecommons.org/licenses/by-sa/3.0/
#2: Initial revision
You don't necessarily need to distinguish the two. If you write, for example, > Dan stared out of the window of the classroom. A green park spread outside. Tulips and Hyacinths were in full bloom. Inside, the teacher droned on about something. You are both narrating the setting (classroom, spring), and showing the character's boredom and desire to be outside.