Most of what I have to say on this topic comes from R. Yaakov Charlop’s article in Techumin 25 on the topic, though I’ve added a few sources here and there. The shiur is available here.
First, it is clear that the categories of Kiddush Hashem and Chillul Hashem are very important. As the Gemara highlights at the end of Yoma, causing a Chillul Hashem is considered a sin in a class of its own, which either requires death to achieve atonement (Rambam), or death cannot offer atonement and the sinner loses his portion in the world to come (R. Yonah). R. Yonah explains that as all creatures are created to bring glory to God, desecrating his name undermines a person’s reason for existence. Continue reading Chillul Hashem as a Factor in Psak (Halachic Methodology 15)