Hi Theresa - it's a question that a lot of people get confused about so don't feel silly!
BMI is Body Mass Index and it's a formula based solely on height and weight. A BMI between 18 and 24 is considered normal, 25 - 30 is considered overweight, and anything over 30 is considered obese. The shortcoming of BMI is that it doesn't take into account age, gender, or body fat %. We have a BMI calculator
here at 3FC.
Body fat % tells you what % of your body is fat and what % is LBM (lean body mass). LBM is everything in your body that isn't fat, such as blood, water, hair, skin and muscle. Body fat % is trickier to measure than BMI because it doesn't use a formula based on height and weight. Instead, people commonly use calipers, a body fat scale like a Tanita, or a hand-held device like the Omron to figure out what % of their body is fat.
Hope that helps!