In some cases, the server creates internal temporary tables
while processing queries. Such a table can be held in memory and
processed by the MEMORY storage engine, or
stored on disk and processed by the MyISAM
storage engine. A temporary table created initially as an
in-memory table may be converted to an on-disk table if it
becomes too large.
Temporary tables can be created under conditions such as these:
If there is an ORDER BY clause and a
different GROUP BY clause, or if the
ORDER BY or GROUP BY
contains columns from tables other than the first table in
the join queue, a temporary table is created.
DISTINCT combined with ORDER
BY may require a temporary table.
If you use the SQL_SMALL_RESULT option,
MySQL uses an in-memory temporary table, unless the query
also contains elements (described later) that require
on-disk storage.
To determine whether a query requires a temporary table, use
EXPLAIN and check the
Extra column to see whether it says
Using temporary. See
Section 7.2.1, “Optimizing Queries with EXPLAIN”.
Some conditions prevent the use of an in-memory temporary table, in which case the server uses an on-disk table instead:
If an internal temporary table is created initially as an
in-memory table but becomes too large, MySQL automatically
converts it to an on-disk table. The maximum size for in-memory
temporary tables is the minimum of the
tmp_table_size and
max_heap_table_size values.
This differs from MEMORY tables explicitly
created with CREATE TABLE: The
max_heap_table_size system
variable determines how large the table is allowed to grow and
there is no conversion to on-disk format.
When the server creates an internal temporary table (either in
memory or on disk), it increments the
Created_tmp_tables status
variable. If the server creates the table on disk (either
initially or by converting an in-memory table) it increments the
Created_tmp_disk_tables status
variable.

User Comments
MySQL also uses temporary tables when processing subqueries in the FROM clause (derived tables), some UNION queries, and some VIEW queries.
"Presence of a BLOB or TEXT column in the table" alone does not prevent the use of an in-memory temporary table unless the BLOB or TEXT column is in the select list and the query uses a group by or distinct clause.
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