First of all, these are just names of formats that you can define when you click Configure data sources tile on data management workspace. You can create another ones, reconfigure existing ones etc. and you should go to there to see what exact configuration is hiding under the name.
I would always use Unicode, unless you have business needs requiring something else. Microsoft also recommends it in DMF documentation. UTF-8 is indeed one of Unicode encodings, but not the only one (e.g. there is UTF-16). As mentioned, you need to look at details of the given format to understand how it's configured.
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