The main distinction between "console" and "terminal" in Linux or most other Unix-like systems is that a "console" uses the whole screen to enter line-oriented commands in text mode, whereas a "terminal" emulates a console within a window (under the X-window environment in most cases). If you're familiar with the old-fashioned Dos OS, it's like the difference between the Dos command line and a "Dos box" under windows.
Here is an explanation of how to use console screens, from about.com:
Ubuntu Desktop Guide - Switch to Console mode
"The usual method of command-line access in Ubuntu is to start a terminal (see the section called "Starting the Terminal" above) , however sometimes it is useful to switch to the real console:
Use the Ctrl-Alt-F1 shortcut keys to switch to the first console.
To switch back to Desktop mode, use the Ctrl-Alt-F7 shortcut keys.
Note: There are six consoles available. Each one is accessible with the shortcut keys Ctrl-Alt-F1 to Ctrl-Alt-F6."