A USB-C hub or dongle (we use the terms interchangeably) is a small, portable device that you can slide into a bag or backpack. A USB-C docking station tends to be heavy and bulky enough that you’ll want to keep it on your desk. It’s not true that a USB-C docking station will have more features than a USB-C hub, as some compact USB-C hubs pack in a surprising number of ports.
Docking stations tend to be bigger and bulkier, and are designed to live on your desk. If there’s anything that docking stations tend to have that dongles sometimes don’t, it’s a USB-C port designed only to accept power from your laptop’s USB-C charger. That allows you to gain additional ports as well as charging capabilities from the same dock.