I think the official Trello documentation explain this in a good way
https://help.trello.com/article/789-changing-the-visibility-of-a-board-to-public-private-or-team
Here is the example.
You are "A" , your team Members are A-1 , A-2 .
I am "B" outside of your team.
1) "A" created a private Board "X" , only "A" can see / edit.
2) "A" invited "B" to join this board, now "X" can be seen by only "A" and "B".
3) "A" create Team Board "Y" , now "Y" can be see/edit by "A" , "A-1" , "A-2".
Hope it makes sense.
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