Difference between Parked and Addon domains and adding them in cPanel
Subdomain
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It does not have an independent domain name.
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It is a website, with its own unique content, but will always carry the name of the parent/main domain.
You have the domain domain.com.
Its document root will be /home/username/public_html.
Contents will be loaded from this location when domain is accessed in the browser.
You decide to have a wordpress installation in a sub directory blog (/home/username/public_html/blog), which you intend to access as blog.domain.com which is recognized as subdomain.
The subdomain can be accessed as domain.com/blog or blog.domain.com. If you own domain.com, you can have many subdomains as blog.domain.com, test.domain.com, support.domain.com
Addon Domain
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Addon domains allow you to control multiple domains from a single account
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it is an additional domain name connected to your primary account but it is an independent website, with its own unique content.
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Links a new domain name to a directory in your account, and then stores its files in that directory. To create an Addon domain you need to register the new domain name before you can host it.
If you have "domain.com" as a primary domain and you also want to host "newdomain.com" as an addon domain, then you need to register "newdomain.com" and add it as an addon domain under the primary hosting account of "domain.com".
The document root would normally be /home/username/public_html/newdomain.com (in this case).
The addon domain will look completely independent to the outside world with no means for anyone to know that this is running on an account under another site.
There are 3 ways of accessing an addon domain:
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newdomain.com
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domain.com/newdomain.com
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domain.newdomain.com
Parked Domain
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A parked domain is NOT a unique website
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Helps you to have more than one domain name to point to the same website
Example
If you have a primary domain domain1.com and you want to have domain2.com and domain3.com to also show the same website, all you need to do is add domain2.com and domain3.com as parked domains of domain1.com.
Anyone accessing any of these sites will be greeted with the contents of domain1.com
How to set up Parked Domains
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To begin with, you will need to point the domain name which you want to add as a parked domain to hosting nameservers of the primary domain.
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Log into your cPanel.
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Navigate to the Domains section >> Aliases menu
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Enter the domain name in the Create a New Alias section and click Add Domain


Note
If you want to point your domain name to a specific subfolder in your account, you need to use the Addon domains option.
How to Remove an alias
If you need to remove an existing parked domain,
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Login to your cPanel
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Go to the Aliases menu >> click Remove.
How to set up an Addon Domain
Change the nameservers
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To begin with, you will need to point your domain name (which you want to add as addon) to hosting nameservers of the primary domain.
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Log into your cPanel. Navigate to the Domains section >> Addon Domains menu
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Enter the necessary information in the Create an Addon Domain section.
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New Domain Name: domain name you wish to add as an addon
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Subdomain and Document Root: will be filled in automatically
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Make sure there are no extra spaces before and after your addon domain name.
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Click Add domain. You may now upload content for your new domain name into the corresponding document root.

How to set up a SubDomain

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Log into your cPanel >> Domains section >> Subdomains menu.
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Enter the following details for your subdomain:
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Subdomain: Enter the desired prefix in the Subdomain text box.
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Domain: Select the desired main domain from the menu.
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Document Root: Enter the home directory for the subdomain in the Document Root text box. Click on Create
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Note
A newly created subdomain will be available online once all the apache services are started for the domain successfully. However, it may take up to 6-8 hours for the newly created record to fully propagate worldwide.
Enable or disable Subdomain Redirection
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Click the Manage Redirection link that corresponds to the subdomain that you wish to manage.
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To Enable redirection for your subdomain - Enter the link to which you want to redirect the subdomain in the available text box.
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To Disable the redirect - click Disable Redirection.