A missile would be some kind of usually longer range projectile and payload with built in propulsion (rocket engine, jet engine).
A guided missile is a missile that can steer. Usually some form of on board sensor and guidance system that can adjust the flight of the missile towards their target. Some missiles are designed to steer towards some kind signature (visual, heat, radio) so it can home onto its target. Others can be programmed with a fix destination and has the ability to navigate there autonomously using inertial guidance or GPS meaning it can adjust for wind, air pressure, or perhaps even terrain.
How they work in detail is way beyond an ELI5 since there are many types.
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