It is very common for newbies to get confused between a domain name with a web hosting. However, it is very important to be crystal clear on the differences between the two before you move on to your first website.
To simplify, A domain name, is like the address of your home; web hosting on the other hand, is the space of your house where you place your furniture.
Instead of street name and area code, set of words or and numbers are used for the websites naming. The same goes with hosting, computer hard disk and computer memory are used instead of instead of wood and steel for storing and processing data files. The idea is presented clearer with the diagram below.