Balanced connections mean that there are two signal wires per channel, each carrying a different polarity of the same signal and twisted together. There is no ground, per se, as any ground lead is only to shield the wires and the two signal leads, only, are connected between the two components. The most significant result is that any RF or electrical noise picked up by these leads is effectively canceled because of the differential termination that subtracts one from the other at the (differential) termiantion. This will make for less noise in electrically noisy environments or with VERY long runs.
Unbalanced consists of a signal lead and ground lead.
In practice, there is no real difference unless you have unusual conditions such as RF noise and/or runs of many meters. My interconnects are 10 meters and there is no audible difference between balanced and unbalanced except that the XLR connectors on the balanced lines are more secure and durable.
Kal