Engraving consists in making shallow lines with a pointed tool which is harder than glass (vidiam* steel, corundum, diamond) on the surface. It is a very ancient technique which was applied to glass as a derivation from hard stones.
The groove looks opaque so drawings or designs or simply writing on glass can be traced. In addition to hard pointed tools, other tools are used in engraving, even very small wheels or rotating pointed tools attached to a drill similar to a dentist's. Many maestros and glasswork companies use this technique to sign their objects.
Engraving (or cutting) on the wheel, on the other hand, consists of removing surface glass, by means of abrasive powder applied to wheels which turn at high speed. The result is like that of bas-relief-type work where the cut indents create figures, decorations etc..
The process involves three successive operations: the actual cutting itself using with bigger-grained abrasives which creates the rough object, then an intermediate stage with finer abrasives, and the final polishing (where required) with cerium oxide applied to soft supports like cork, plastics or felt cloths.
This last stage makes the surface perfectly shiny by removing the opaqueness formed from the previous stages.