Augmented reality helps the user to experience real-world happenings which are digitally enhanced, or augmented, but still real. Virtual Reality removes a user from real-world experiences and replaces it with a simulated world.
Virtual Reality is the more-known side of this coin. To find examples of virtual reality will not be difficult in daily life, because it is found in many devices which take you completely out of reality. This can be to simulate an everyday situation that needs a problem solved or it can also be in a game played on a computer or other electronic device.
Augmented reality uses real-world experiences that are enhanced or digitally made more tangible. Some examples of this are on-the-job training, computer-assisted help with tasks, and remote assistance. Users need to be present and connected to the real world to perform these tasks.
Complete immersion and the total exclusion of the physical world are required for Virtual Reality. VR devices will shut out the real world in totality.
However, AR devices are transparent and allow the user to stay connected to reality. Users of Augmented Reality need to be connected to the real world because of the type of work they perform.
To determine what will work best for the task at hand, you need to understand these differences.