What's the difference between inserting a YouTube video vs embedding a YouTube video?

Our Brightspace instance does not have an API key, so we can't use Insert Stuff > YouTube. As a workaround, our instructors use Insert Stuff > Enter Embed Code, then we use the embed URL from YouTube.

 

What are the functional differences between these options? Are there benefits to using Insert Stuff > Youtube? Should I push my org to set up an API key?