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A parked domain is an additional domain that points to the main directory of your account. A parked domain will resolve to your primary domain name.

Say your primary is abc.co.uk and you park xyz.co.uk In the address bar if you type xyz.co.uk it will resolve to abc.co.uk but in the address bar you will see xyz.co.uk. This is a parked domain.

An addon domain allows you to run a separate web site to your primary domain. When you create an addon domain it makes a folder in your public_html folder and you upload the site content into that folder.

So essentially you are running 2 separate sites, separate content, off one account. With both the parked and add-on domains, you can create seperate email accounts for each domain name.