Step 1: Use difference of squares.
\[
\cos^4\theta - \sin^4\theta = (\cos^2\theta - \sin^2\theta)(\cos^2\theta + \sin^2\theta) = \cos 2\theta
\]
Step 2: Apply formula.
\[
\cos^4 \frac{\pi}{24} - \sin^4 \frac{\pi}{24} = \cos \frac{\pi}{12}
\]
Step 3: Express \(\frac{\pi}{12}\) as difference.
\[
\frac{\pi}{12} = \frac{\pi}{4} - \frac{\pi}{6}
\]
Step 4: Apply \(\cos(A-B)\) formula.
\[
\cos(A-B) = \cos A \cos B + \sin A \sin B
\]
Step 5: Substitute values.
\[
\cos \frac{\pi}{4} = \frac{\sqrt{2}}{2}, \quad \sin \frac{\pi}{4} = \frac{\sqrt{2}}{2}, \quad \cos \frac{\pi}{6} = \frac{\sqrt{3}}{2}, \quad \sin \frac{\pi}{6} = \frac{1}{2}
\]
Step 6: Compute final value.
\[
\cos \frac{\pi}{12} = \frac{\sqrt{2}}{2} \cdot \frac{\sqrt{3}}{2} + \frac{\sqrt{2}}{2} \cdot \frac{1}{2} = \frac{\sqrt{6}+\sqrt{2}}{4}
\]
\[
\boxed{\frac{\sqrt{2}+\sqrt{6}}{4}}
\]