The "Powder Type" is a much smaller grain size version of the normal type... otherwise their qualities and characteristics are the same.
Here is a comparison of their size and texture:
Normal Type:
Powder Type:
Photo Source: http://www.adana.co.jp/en/products/n...ate/aqua_soil/
Most people use powder type in smaller tanks to enhance the sense of scale (normal type when used in smaller tanks tend to make the tank look even smaller)... and powder type is also used as a top layer in tanks that use carpet plants with small roots (ie. HC) as its easier to plant and root them in finer grain soil.
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