Pretty much everything about this and how to achieve the best support for multiple screens of different sizes and densities is very well documented here:
Screen size
Actual physical size, measured as the screen's diagonal. For simplicity, Android groups all actual screen sizes into four generalized sizes: small, normal, large, and extra-large.Screen density
The number of pixels within a physical area of the screen; usually referred to as dpi (dots per inch). For example, a "low" density screen has fewer pixels within a given physical area, compared to a "normal" or "high" density screen. For simplicity, Android groups all actual screen densities into six generalized densities: low, medium, high, extra-high, extra-extra-high, and extra-extra-extra-high.Orientation
The orientation of the screen from the user's point of view. This is either landscape or portrait, meaning that the screen's aspect ratio is either wide or tall, respectively. Be aware that not only do different devices operate in different orientations by default, but the orientation can change at runtime when the user rotates the device.Resolution
The total number of physical pixels on a screen. When adding support for multiple screens, applications do not work directly with resolution; applications should be concerned only with screen size and density, as specified by the generalized size and density groups.Density-independent pixel (dp)
A virtual pixel unit that you should use when defining UI layout, to express layout dimensions or position in a density-independent way. The density-independent pixel is equivalent to one physical pixel on a 160 dpi screen, which is the baseline density assumed by the system for a "medium" density screen. At runtime, the system transparently handles any scaling of the dp units, as necessary, based on the actual density of the screen in use. The conversion of dp units to screen pixels is simple:px = dp * (dpi / 160)
. For example, on a 240 dpi screen, 1 dp equals 1.5 physical pixels. You should always use dp units when defining your application's UI, to ensure proper display of your UI on screens with different densities.
If you are any serious about developing an Android app for more than one type of device, you should have read the screens support development document at least once. In addition to that, it is always a good thing to know the actual number of active devices that have a particular screen configuration.