A USB-C hub is a small, portable port expander that draws power from your laptop, while a docking station is a larger, heavier desktop workstation with its own wall power supply.
Power Source
USB-C Hub: Runs on power from your computer (bus-powered) or uses basic pass-through charging from your laptop's USB-C brick.
Docking Station: Plugs directly into a wall outlet with its own power adapter to reliably charge your laptop and power all connected accessories.
Performance and Displays
USB-C Hub: Shares a single port's bandwidth among all connected devices. It usually supports only one external monitor.
Docking Station: Offers high-speed bandwidth (such as Thunderbolt 4). It easily runs two or three high-resolution monitors and heavy peripherals at the same time.