do a sample installation with the hinge between two pieces of 1x6 to become familiar
with how a piano hinge operates.
then, decide if you want your lid to open all the way and lay flat on the deck
or ... just only be hand held straight up and down.
if the hinge is mounted up a little above flush will allow the lid to go back more when opened.
too low, and it will bind when trying to go past the straight up and down position.
it really depends on how often you open the box and the lid position when it is open.