Switches are easy to understand. Think of them as a switch to a light bulb. A switch, unlike a variable, can only be turned on or off. Switches are excellent for opening up custom menus, changing NPC dialogue, sparking events, and so forth. Under SWITCH operations, you can change switches to ON, OFF, and even a TOGGLE ON/OFF command.
Variables are different from switches because they store values instead of just turning on or off. Variables are useful for many miscellaneous events in the game like a bestiary for storing monster data and displaying the number slain. Nevertheless variables are useful when dealing with certain value of game play elements than binary elements.