I've digitized my entire library, around 1100 CDs and 50ish dl's, mostly from HD Tracks. Used initially an Olive (two of them), finally waving the white flag on its finicky nature and craptastic customer service and am now happy as a loon with my Sony server. Anyhoo, I've been reading as much as I can on this topic. I'm no expert, just someone who dove into it. Some random learnings, and again I'm just a regular bloke:
1. If it's not recorded in HD, making it HD afterwards (i.e., for sale as a HD dl) I don't believe is worth it. Maybe with the exception of a remaster straight from the master tapes perhaps. However, what's leaking out now here & there is that it's rarely done. Buying a 'HD' of say, Carole King's Tapestry for example. Recorded in the 70s. Is the HD just more bits of the original recording? In which case it might sound worse not better (some argue). But, if they literally opened up the vaults, dusted off the reel, remastered in HD, then I would think (hope?) it's better.
2. When Beck won the Grammy, there was a brouhaha with HD Tracks marketing the dl as HD when in fact some of the tracks were not only not CD quality but actual MP3s. Those scamps. That news was a big eye opener for me. Stereophile wrote about this and printed the graphical analyses. HDT then added a disclaimer that 'some of the tracks are not...yadda yadda.'
3. I can say that if it truly is *recorded in HD* a la Sound Liaison, you are getting the primo supremo royale with cheese. I've got a couple dl's from them and holy guacamole that is some fine sound. Give them a try.
4. Some argue we can't distinguish HD music anyways. Pono seemed to unleash that controversy. There's a site where you can compare redbook and HD songs and take a test. I did it, it's kinda fun actually. Need good headphones for it.
5. To your question of what is the difference, I believe HD is more 1s & 0s jammed into the same space.
And lastly, a plug for the Sony server. It does some funky oversampling and digital correction and wizardry stuff automatically (which can be disabled). I think the years will show that Sony server to be a watershed product in our space, it's that good. I truly believe my CDs sound better on that Sony than via CD player. I'm all in on it.
I prolly have muddied the waters more than anything, and laid down a welcome mat for the engineering types here to flip out, but I don't mind. Food for thought anyhoo.