DC uses a simple variable direct current similar to battery current, to the track. Only one loco can be used at a time unless you break the track into sections called blocks.
DCC uses a digitally coded AC current, whereby you can control many locos at the same time. All the track is energized at full power all the time, and a "decoder" in each loco responds only to digital commands at it's own unique digital address. These commands regulate the amount of power to the motor in that loco.
The two systems are generaly non-compatable. However, you can convert a DC loco to DCC operation by installing a decoder for $20-$50.
With DCC, turnouts can have all rails energized or can be what is called power routing. But generally speaking, on most layouts all rails are energized all the time.