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C6 is the model sequence, 6th generation Corvette. Z06 is a version within the model. There have been C5, C6 and now C7 versions of the Z06.

As for the difference, prior to the ZR1 the Z06 was the pinnacle of performance with so many differences it's hard to sum up in a forum post.
 

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Also, remember that C5, C6, and C7 are not official GM terms, but enthusiast shorthand for the various generations. Z06 is an actual model in the first two generations I mentioned, with a version of the seventh generation expected late next year.
 
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