Interesting question! I have long been fascinated with binaural recordings, especially when using headphones to listen to playback.
Most of us have two ears, and the 3D sound world around us is experienced by the cues our brain perceives in the slight difference in timing that a sound arrives at each ear. We can usually tell the direction that a sound originated, whether it was front, back, left, right, near, far, or somewhere in between.
The binaural recording only requires a two channel microphone setup, with the mics spaced about the width of a human head, about the same distance apart that our ears are. One example would be to situate the mics on a mannequin head for realism.
It is amazing how real the "illusion" of a stereo field is using this method. The first time I heard an insect buzzing around my head in the headphones, I was ready to swat it down, because it sounded that real!
The free plugin by Auburn Sounds, Panagement (binaural panner), will let you set a channel in your mix anywhere in the stereo space. Set up a couple tracks in a mix with this plugin and try moving them around. >
https://www.auburnsounds.com/products/Panagement.html