nVarchar2 is a Unicode-only storage.
Though both data types are variable length String datatypes, you can notice the difference in how they store values. Each character is stored in bytes. As we know, not all languages have alphabets with same length, eg, English alphabet needs 1 byte per character, however, languages like Japanese or Chinese need more than 1 byte for storing a character.
When you specify varchar2(10), you are telling the DB that only 10 bytes of data will be stored. But, when you say nVarchar2(10), it means 10 characters will be stored. In this case, you don't have to worry about the number of bytes each character takes.