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Practical difference between Document Collection Members and Documents?

Hi, new to the Forum and it has been super helpful!  I couldn't find an andwer to my question though:

We use Document Collections quite a bit, but it is unclear what the practial difference is between the Document Collection Members and Document Collection Documents?

I guess the relationship is different depending on how documents are linked to the Collection (drag & drop vs. metadata property), but I struggle to understand why sometimes the document metadata shows the Collection (if as a Document) and sometimes it doesn't (if as a Member). 

I hope to have this crystal clear in my mind, so that I can train our users efficiently and not confuse them too much. 

Any insights?