Both I guess? It's possible I simply lack the terminology to discuss 2D lighting xD Here's an image of what I mean specifically: Pixel Art Lighting Examples - Imgur
I assume you have added some kind of global screen tone to achieve "night-time" and masked out the torches to achieve "light". I'm not ashamed to admit I'm just bad at technical art like this, but you also have some very pretty sun/moon beams that I have a surprising amount of trouble replicating on my own.
