What is the difference between Code Inline and Code Behind?

As the names suggest I would presume that Code Inline refers to code that is in the same file as the .aspx and Code Behind refers to code that is in a seperate file.

Im not too sure if thats correct or not.

Also how would I do this in VS 2013? When selecting a web form there is no option or check box to place code in a seperate file

As the names suggest I would presume that Code Inline refers to code that is in the same file as the .aspx and Code Behind refers to code that is in a seperate file.

Correct. The benefit of having hte code-behind model is that you can let web designers work on the .aspx file while the web developers (programmers) work on the .aspx.cs file.

If you are both the designer and developer, you will still see a benifit with regards to organization.

When selecting a web form there is no option or check box to place code in a seperate file

There should be... Do you have web dev version installed?

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Thankyou. This is what I see when I right click -> Add New Item 3d5279d81e31306cbfd4f8b88e5d823a
As you can see there is no option to choose to place code into a seperate file