Short answer: An abrasive wheel is a block of bonded grit that grinds itself away as it cuts. A diamond disc is a steel body with diamond grit on the rim, and the body stays the size it started. Abrasive is cheaper per disc. Diamond is cheaper per cut, and it stays at full capability throughout its life.
How does an abrasive wheel work?
It is grit held together in a bonded matrix, usually aluminium oxide for metal.
Cutting rips grit off the surface, which exposes fresh grit underneath. That self-sharpening is the whole design, and it works well. It is also why the wheel shrinks: every cut consumes part of it.
Where it makes sense: occasional jobs, one specific cut, or when you need something today from the nearest hardware store.
How does a diamond disc work?
A steel body carries diamond grit bonded to the rim. Diamond is harder than anything you are likely to cut, so the grit grinds through material without being destroyed by it.
The body stays intact. The disc ends its life when the rim grit is worn away, not when the disc has vanished.
Where it makes sense: regular use, hard materials like stone, tile, porcelain and glass, and anywhere consistency matters.
The differences that actually show up in use

Diameter. An abrasive wheel shrinks from 4 inches down to a stub. A diamond disc holds its size. That single fact drives most of the others.
Cutting speed over time. As an abrasive wheel shrinks, its rim speed falls, so cuts get slower. A diamond disc cuts as fast on the last job as the first.
Depth of cut. A worn abrasive wheel cannot reach as deep. Halfway through its life it has lost part of its usefulness.
Materials. Abrasive is at home on metal. On tile, porcelain, granite and glass it struggles, chips edges or fails. Diamond handles hard and brittle materials that abrasives cannot.
Dust and debris. Abrasive wheels shed themselves into the air, so part of what you are breathing is the wheel.
Cost. An abrasive wheel costs less to buy. A diamond disc costs less per cut, because one replaces a stack of them.
So is abrasive ever the right choice?

Yes. If you cut mild steel twice a year, a pack of abrasive wheels is a sensible purchase and there is no reason to spend more.
The maths changes when you cut regularly, or when the material is hard. Then the cost of buying wheels repeatedly, and of cutting with a wheel that is slower every time, overtakes the price difference.
What about the "indestructible" name?
It is a name, not a physics claim, so here is the honest version.
A diamond disc does not wear away the way an abrasive wheel does, which is why it lasts through work that would consume a stack of them. But it is not immune. Heat glazes the rim. Side load can crack the body. Cutting the wrong material wears the grit prematurely. Treat it badly and it will fail like anything else.
What it does do is hold its size and capability across its working life, which is the practical difference you feel.
Which disc for which material?
Each disc in our range is built around one material, and all of them handle the rest:
| Material | Disc |
|---|---|
| Steel, aluminum, copper, brass | Indestructible Disc 2.0 |
| Concrete, marble, granite | Indestructible Disc 3.0 |
| Ceramic and porcelain tile | Indestructible Disc 4.0 |
| Glass and mirror | Indestructible Disc |
| Hardwood and softwood | Indestructible Carving Disc |
All are 4 inch outer diameter with a 5/8 inch arbor, rated to 12,225 RPM.
The short version
Abrasive wheels are consumables that shrink as they work and suit occasional metal cutting. Diamond discs keep their diameter, handle hard and brittle materials, and cost less per cut once you use them regularly.
See the range: Cutting Discs for Angle Grinders