Hi Harooon,
@salmanahmed is right about the main differences between spark plugs (except for the bit about diesels), but to answer your question about heat grades-
The heat grade of a spark plug has nothing to do with how well the plug delivers a spark,and it only refers to how well a spark plug performs thermally in any given engine. To put it simply, a "hot" plug will heat up easily, while a "cold" plug resists heating up. There are many ways in which manufacturers control the heat grade of a plug, but generally, the heat grade of a plug is determined by;
The surface area and/or length of the insulator nose
How well the various spark plug components conduct (or resist) temperature changes
The material used for the center electrode- copper, for instance
The position of the insulator tip relative to the end of the ceramic shell
In practical terms, the heat grade of a plug determines how well it cleans itself, meaning that the plug needs to be able to burn off the carbon deposits that form on the tip of the plug. This happens at temperatures of between 500-, and 800 degrees Celcius. So, if plug takes too long to heat up (a cold plug), the the carbon deposits can build up to the point where the spark might jump across the deposit, and not across the gap between the electrodes.
If the plug heats up too soon (a hot plug), the plug can overheat, and burn away the electrodes too fast. This is true even for titanium and irridium plugs, but the bottom line is that if a plug is either too hot or too cold for any given application, fuel economy, spark plug life, and engine performance suffer.
The optimum temperature at which carbon deposists burn off spark plugs is around 450 degrees Celcius. Note that this temperature refers to that of the spark plug, and not the combustion process. A spark plug of the correct heat grade will stay at this temperature by transferring heat to the cylinder head by direct contact through its screw threads, as well as through contact with the air fuel mixture when it enters the cylinder. Spark plugs of the incorrect heat grade cannot maintain the optimimum self cleaning temperature, so they fail either through over heating, or carbon fouling.
Generally speaking, the difference from one heat grade to the next is 70-100 degrees Celcius- enough to reduce spark plug life and engine performance in some engines, which is why it is very important to only use the recommended spark plugs.