Hi @Adz,
A list contains items that are collections of fields/properties/columns. Optionally each item can have one or more attachments.
A library is a list, but but have one and exactly one file associated with each item. A library item also has fields/properties/columns.
Another way to say this is that a list item has a focus on "text" stored in fields/properties/columns, while a library has a focus on a single document.
When writing custom code, a list and a library look, and are processed the same, so both internally are "lists". Both lists and libraries (generally) support common features such as Content Approval, Versioning, and Folders. Libraries alone support Check in and Check Out.
Here is a table of difference between list and library
SharePoint List | Document Library |
---|---|
Can have more than one documents attached to the list item | Does not have document as an attachment instead it stores the document in library as an item |
Only major version is supported | Major(Published) and minor(draft) versioning is supported |
Do not support check-In/Check-Out feature | Supports check-In/Check-Out feature |
Documents added as attachment are not included in Search index/result | Documents in library are included in search results |
Attachment document in list item will not work with eDiscovery feature | Documents in library will work with eDiscovery feature |
Cannot enable location based default value in list | Can enable location based default value in document library |
Cannot have document set | Can have document set |
You can refer to the nice article for more details
https://sharepointmaven.com/lists-vs-libraries-in-sharepoint-online/
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