range(): range(1, 10) returns a list from 1 to 10 numbers & hold whole list in memory.
xrange(): Like range(), but instead of returning a list, returns an object that generates the numbers in the range on demand. For looping, this is lightly faster than range() and more memory efficient. xrange() object like an iterator and generates the numbers on demand.(Lazy Evaluation)
In [1]: range(1,10)
Out[1]: [1, 2, 3, 4, 5, 6, 7, 8, 9]
In [2]: xrange(10)
Out[2]: xrange(10)
In [3]: print xrange.__doc__
xrange([start,] stop[, step]) -> xrange object