Kubernetes: relation between Service IP's and pod IP's

It is a long story how Kubernetes network is made...

Kubernetes assumes that pods can communicate with other pods, regardless of which host they land on. Every pod gets its own IP address so you do not need to explicitly create links between pods and you almost never need to deal with mapping container ports to host ports. This creates a clean, backwards-compatible model where pods can be treated much like VMs or physical hosts from the perspectives of port allocation, naming, service discovery, load balancing, application configuration, and migration.

Kubernetes use both private and public accessible IP addresses. Public IP addresses are not mentioned at this moment.

Kubernetes uses private pool of addresses to provide communication inside a cluster. Every pod and service has a private IP address. Services in Kubernetes are virtual - they are created by NAT, and iptables creates port redirection from addressed service to pods.

Basic rules of the communication inside of the cluster:

• all containers can communicate with all other containers without NAT
• all nodes can communicate with all containers (and vice-versa) without NAT the IP that a container sees itself as is the same IP that others see it as

Regarding your question: official Kubernetes network documentation states:

--service-cluster-ip-range ipNet -  A CIDR notation IP range from which to assign service cluster IPs. This must not overlap with any IP ranges assigned to nodes for pods.

So, is not recommended to have service IP in the same range that is used by pods.

I highly recommend watching video about Kubernetes networking or looking at illustrated guide.