It is a constantly every changing field. New evidence comes to light, and new theories are changed. With exact color, pigmentation does not generally exist with modern fossil records, and so illustrations take a lot of artistic liberties. Sometimes they base the illustrations off modern day animals. Most of the time its pure guesswork.
Stuff like behavior, while still guesswork, is more informed. How a skeleton is laid out, how certain body parts are positioned, how certain teeth are shaped, can tell you a lot about how an animal can act. If you can guess how an animal eats, how it walks, you can make good guesses about how it lives its everyday lives.
And again, because we cannot observe these animals in real life, at the end of the day its still all guesswork. That’s why conflicting theories and debates can exists amongst the paleologist field.
For a contemporary example, look up all the discussion about Spinosaurus and the debate of its aqueous nature.
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