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Here is sp_consensus_babe https://releases.parity.io/substrate-rustdoc/src/sp_consensus_babe/lib.rs.html#86 and pallet_babe :https://crates.parity.io/src/pallet_babe/lib.rs.html#18-975

What is difference between them and when to use each of them?

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The first part of sp-consensus-babe sp stands for substrate primitives, meaning packages that usually includes elements providing the foundational structures and functionalities.

In this case, sp-consensus-babe is a crate that is used by the BABE pallet.

You might use BABE pallet when you want to include such a pallet in your runtime (blockchain) because you want your blockchain to produce blocks following the BABE block production mechanism.

You might use primitives from sp-consensus-babe in a context where you are building a crate or some code, and you might need the primitives existing there. Just including it in the Cargo.toml file, as others do, should be enough.

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