There are two types of environment variables: build-time and runtime variables. Build-time variables are those used when building your images. These are usually URLs, options, or non-sensitive data. Runtime variables are used when running your images. Keys for third-party APIs and other sensitive data must be a runtime variable.

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Configuring build-time variables

Assume your front-end app needs the REACT_APP_API_URL so it knows the back-end address to send requests to. In that case, your Dockerfile must take an ARG and assign the value of that arg to the REACT_APP_API_URL environment variable, as shown below 
FROM node:16-alpine

# This is an argument which we'll use to set
# an environment variable for when the image runs
ARG REACT_APP_API_URL

# The value of REACT_APP_API_URL will be
# baked _into_ the image
ENV REACT_APP_API_URL $REACT_APP_API_URL

# Now, REACT_APP_API_URL will be used in the build
RUN npm run build
Then, to fill that environment variable with the actual URL for the back-end in each preview (which will change from PR to PR), use the dev.ergomake.env.replace-arg.REACT_APP_API_URL. Within that label, we can interpolate the URL of each service using services.<SERVICE_NAME>.url, as shown below. 
# Here's an example docker-compose.yml file
version: "3.8"
services:
  # On pull-requests, Ergomake can build your own images
  web:
    build: ./frontend
    ports:
      - "8080:8080"
     labels:
       # This label will cause Ergomake to set, during build time,
       # REACT_APP_API_URL to the address of the API service (https),
       # followed by "/prefix"
       dev.ergomake.env.replace-arg.REACT_APP_API_URL: 'https://{{ services.api.url }}/api'

  # You can build a second repository by referencing a folder with
  # the desired repository name in a path *outside* your current repository.
  api:
    build: ../../my-backend-repo
    ports:
      - "3001:3001"
Build-time variables are built into the resulting image. Therefore, you should avoid using secrets as build-time variables.

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Configuring runtime variables

You should set third-party API keys and other sensitive information as runtime variables. These secrets and environment variables usually come in the form of a .env file.
If you have an .env file, please do not use it in your docker-compose.yml file, unless you commit that file to your repository — which you probably shouldn’t do.
To configure these runtime environment variables, you must select the repository for which you want the runtime variables to be set. Then, you should click the “Environment Variables” tab on the upper right corner, and add the desired variable. Environment variables light
All runtime variables are encrypted at rest.

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Branch-specific environment variables

You set environment variables for a specific branch by typing a branch name into the environment variables form. When the branch name field is left empty, the environment variable will apply to all branches. When filled, the environment variable will only apply to that particular branch. Branch-specific environment variables take precedence over environment variables set for all branches. For example, if you set MY_VAR as foo for all branches and MY_VAR as bar for branch staging, the value of MY_VAR in staging environments will be bar.