you could have typed that question in google:
http://www.addictivetips.com/windows-tips/what-are-physical-logical-hard-drive-bad-sectors-how-to-repair-them/
Edit:
In short, logical is sofware (in most cases, windows) failing read/write operation at a sector of disk, thus marking it as "bad"
Hardware is.. that disk itself decides that "this doesn't work, I will not use this sector anymore" which is often a result of physical problem on the drive platter.
Out of the two, Logical ones are not necessarily truly bad and might be working with a few tries, chkdsk [diskletter] /B tries to re-evaluate those.
It doesn't always work though and in all cases with bad sectors appearing, backup important things ASAP, if things go south, you didn't lose...