Cabin baggage is also known as carry-on or hand luggage. You take it through security into the plane and keep it close to you, either under the seat or in the overhead compartment.
Checked baggage is also known as hold or cargo luggage. It refers to anything that a passenger wants to transport in the cargo hold of the aircraft. Most people transport larger items as checked baggage, like suitcases, oversized items, sports equipment, and musical instruments.