Discrete modules use only a single bit to represent the state of the device. For example, a switch is either open or closed. Therefore, the bit is either a 0 (switch is open) or a 1 (switch is closed). Discrete modules are also known as Digital modules.
Analog modules use words to represent the state of a device. An analog signal represents a value.. For example, the temperature could be 5, 9, 20, 100, etc degrees. Analog modules use a value, such as 52, rather than a 0 or 1 to represent the state of the device.