URL encoding and HTML entity encoding both escape special characters, but for entirely different contexts. URL encoding (percent-encoding) makes characters safe inside a URL, turning a space into %20. HTML entity encoding makes characters safe inside HTML, turning a < into < so the browser doesn't treat it as a tag.
Swapping them causes broken pages or security holes. Percent-encoding a value you're inserting into HTML won't stop it being interpreted as markup; HTML-encoding a URL value breaks the link. Each scheme protects a specific parsing context.
At a glance
Aspect
URL Encoding
HTML Entities
Context
Inside URLs
Inside HTML documents
Example
space becomes %20
< becomes <
Purpose
Keep URLs valid
Prevent markup injection
Escapes
Reserved/unsafe URL chars
<, >, &, quotes
Security role
URL integrity
Prevents XSS in output
When to use URL Encoding
You're building a query string or URL path.
A value contains spaces or reserved URL characters.
You need the URL to stay valid and parseable.
When to use HTML Entities
You're inserting user data into an HTML page.
You need to prevent characters being read as tags.
You're guarding against cross-site scripting in output.
Verdict
Encode for the context the value lands in — never assume one scheme covers both. Use URL encoding when a value goes into a URL and HTML entity encoding when it goes into HTML. Getting this wrong isn't just cosmetic: HTML-encoding output is a core XSS defense, and URL-encoding keeps links from breaking. If a value passes through both contexts, encode at each stage appropriately.