With Output Hardware you can output digital signals (to turn on/off switches - used for lights, sirens, pumps, clutches, motors, etc.) or analog signals (to send voltage from valid range to a device - used for controlling valves, intensity of lights, speed of a motor, etc.)

With Input Hardware you can input digital (to test if relay is on or off - switch, motor, pump, etc.) or analog signals (measure voltage - temperature, speed of a motor, flow in a pipe, pressure in a tank, etc.)