That distinction trips up more people than any other part of this topic. So let's start there.
What the three levels actually are
The federal government classifies national security information based on how much damage its unauthorized disclosure would cause. The three clearance levels map directly to those three damage categories.
Confidential: Disclosure could reasonably be expected to cause damage to national security.
Secret: Disclosure could reasonably be expected to cause serious damage to national security.
Top Secret: Disclosure could reasonably be expected to cause exceptionally grave damage to national security.
That language is not marketing copy. It comes from the executive order governing classification, and adjudicators apply it literally. The escalating adjectives are the whole distinction: damage, serious damage, exceptionally grave damage.