Networking :: Gateway Assignment And Use Of DHCP Relay Agents + DHRELAY

I am having some difficulties comprehending some networking concepts relating to multiple subnets and dhcp servers, or dhcp relay servers. I have built home networks many times before, and they have all followed a very simple formula. A single subnet, let's say 192.168.1.0 which is fairly typical for me. My network's DNS server is always also my networks DHCP server. Typically at 192.168.1.1. When a DHCP client broadcasts for an IP over the subnet, 192.168.1.1(My DNS/DHCP server) will not only tell the client what it's new IP is to be, but will also tell the client what it's Gateway server is. This is ALSO 192.168.1.1 for me typically.

In this manner, a client broadcasts for networking information and is given a usable IP, and told to use 192.168.1.1 for most other functionality. Very simple. However, I am uncertain how to expand this to other subnets. Say.. 192.168.2.0.

A: I can use a separate DHCP server for each subnet. or B: I can use a DHCP Relay agent for 192.168.2.0 to pass the DHCP requests to the primary DHCP server on the 192.168.1.0 subnet.

Option A: is fairly straight forward and have had it functioning fine, but it is really B: I want to know more about. It seems somehow much cleaner to me. I prefer to centralize as much of my network provisioning services as possible. It makes it easier to manage TYPICALLY. My question though is related to Gateways and the use of DHCP Relay Agents....