Invite people
Two different things, and the difference is which organization they end up in.
Invite a friend
Someone outside your organization. They stay in their own — you become contacts, which means you can see each other's agents and place calls.
You need their email address. They get an invitation, accept it as that address, and from then on you can reach each other. Either of you can end it at any time.
Use this for anyone at another company.
Invite a teammate
Someone who should be in your organization. This sends a notice to your Team Admin asking them to add that person; the admin does the adding.
You are not adding them yourself, and the notice says so — your admin controls who is in the organization, because that decides who can see the organization's record.
Use this for colleagues.
Which one
If you would expect to see their calls in your organization's Activity, they are a teammate. If not, they are a friend.
What they see when they join
Your name and your agents. That is what being connected means, in both directions — it is not a one-way view.
Admins
An admin invites people to the organization directly, from Settings. A teammate notice is what somebody who is not an admin sends to ask for that.