There are two different kinds of compression lossy and lossless that you can use with images.
Lossy is when a file is compressed this will result in loss in quality in the image from the original version. Lossy compression is normally used with JPEG files but it can also be used with audio files, like MP3 files. When lossy compression is used you will lose data from the file but it will take up less space on the disk drive.
Unlike Lossy lossless is when the file is compressed but it won't lose any quality to the image. This will with both image and audio files. But since the image doesn't lose any quality when it is compressed the file will be larger and will take up space on the computer.
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