For the best explanations of the different types of military discharges go here: http://themilitarywallet.com/types-of-military-discharges/ To briefly explain, there are actually five different discharges one can receive from the military, three are administrative and two are considered punishment from a court martial. Going from best to worst, they are as follows…
ADMINISTRATIVE DISCHARGES:
Honorable Discharge
An Honorable Discharge is an administrative discharge. It means a service member completed his or her duty with admirable personal and professional conduct. Ones with an honorable discharge receive full benefits. They also have an easier time finding employment since an honorable discharge reflects well on a resume.
General, under Honorable Conditions
A General under Honorable Conditions is an administrative discharge. The word “General” denotes that a service member completed his or her service with less-than-honorable circumstances during duty or upon discharge. Conditions such as illness, injury or other determinants lead to a general discharge. An unacceptable behavior such as drug abuse initiates a general discharge as well. A commander makes known the reason for a general discharge in writing. People tend to equate a general discharge with an honorable one. However, general discharges actually deem many veterans ineligible for certain benefits such as the GI Bill.
Other-than-Honorable Discharge (OTH)
(formerly: “Undesirable Discharge”)
A judgment of an OTH discharge occurs when a military member is in trouble with the civilian court system, for reasons like a felony conviction leading to imprisonment. OTH is the most severe of the administrative discharges because people with OTH are banned from ever reenlisting into the military. OTH recipients do not receive VA healthcare or most benefits provided through the VA.
PUNITIVE DISCHARGES:
Bad Conduct Discharge (BCD)
(Sailors call it the; “Big Chicken Dinner”)
Bad Conduct Discharge is a punitive discharge handed down by a court. It is normally punishment for a crime and generally given to enlisted personnel. Normally, those who receive a BCD will serve time in a military prison. No benefits are available to veterans with a bad conduct discharge.
Dishonorable Discharge (DD)
A dishonorable discharge is also a punitive action against a military member. Serious offenses such as murder or desertion of one’s duty will cause a court martial to order a dishonorable discharge. Like a convicted felon, veterans with a dishonorable discharge do not receive any benefits, and may never possess a firearm. They are prohibited from voting in elections for the rest of their lives. They are ostracized from the military community and will generally have a very hard time finding any employment above minimum wage.