So, what's the main difference between these two research methods? In a nutshell, it's all about cause and effect. In an experiment, scientists can establish cause and effect by controlling variables and seeing how they impact the outcome. In an observational study, they can only identify correlations - things that seem to be related, but might not necessarily be cause-and-effect.
For example, let's say you want to study the effect of coffee on productivity. In an experiment, you could recruit participants, give some of them coffee, and see how it affects their work. In an observational study, you'd just observe people who drink coffee and see if they seem more productive - but you wouldn't know for sure if the coffee was the cause of their productivity.
It's like trying to figure out why your friend is always so cheerful - is it because they drink coffee, or is it because they're just a naturally happy person? With an experiment, you could try to find out for sure, but with an observational study, you'd just have to take a educated guess.