FAQ difference between script and component

From DANSE

The rough answer is, a script is a standalone executable--it doesn't need any other context to make it work, whereas a component only works from within a script or application. A script is not really meant to be run from within another script, although, this being Python, there is a way to make it happen. So if you're writing a standalone application, use script; if you're writing a piece of code that you eventually want to be used by another component or script, use component.

For a much more detailed and nuanced discussion, see <LINKME>