Despite being a technology that originated decades ago, many people are still unfamiliar with the concept of Virtual Reality. It is also quite common to confuse the term Virtual Reality with augmented reality.
The main difference between the two is that VR builds the world in which we immerse ourselves through a specific headset. It is fully immersive and everything we see is part of an environment artificially constructed through images, sounds, etc. On the other hand, in augmented reality (AR), our own world becomes the framework within which objects, images or similar are placed. Everything we see is in a real environment and it may not be strictly necessary to wear a headset. The clearest and most mainstream example of this concept is Pokémon Go.
However, there is also a combination of both realities called mixed reality. This hybrid technology makes it possible, for example, to see virtual objects in the real world and build an experience in which the physical and the digital are practically indistinguishable.
Reference:
Corporativa, I. (n.d.). Virtual reality: Another world within sight. Iberdrola. Retrieved February 2, 2023, from https://www.iberdrola.com/innovation/virtual-reality