The first toggle controls the status of the automation, or perhaps I should say it disables the automation’s triggers as an automation turned off from this toggle can still be run/triggered manually. This is available for automations only, and can also be toggled by automations themselves, scripts, etc.
The second toggle controls the status of the entity. This is available for all entities. It can only be controlled from the GUI and some lower level API, not by automations/scripts. An entity that is disabled for all intents and purposes no longer exists, the only practical difference to actually deleting it is that it can be quickly brought back by re-enabling it.