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A condition is any physical or mental health problem which can be rated for severity and may or may not be compensable by the VA. Through speaking to your VA representative and filling out the right forms, you may request “Service Connection” for your conditions.
Examples of conditions that may be service connected include such things as hearing loss, back injuries, ankle or knee injuries, heart disease, certain cancers and mental health conditions just to name a few. There are over 800 conditions listed by the VA which can be service connected.
Disability Compensation is a tax free monetary benefit paid to Veterans with disabilities that are the result of a disease or injury incurred or aggravated during active military service. Compensation may also be paid for post-service disabilities that are considered related or secondary to disabilities occurring in service and for disabilities presumed to be related to circumstances of military service, even though they may arise after service. Generally, the degrees of disability specified are also designed to compensate for considerable loss of working time from exacerbations or illnesses.
See “Compensation 101: What is Service Connection?” here: https://www.youtube.com/watch?v=h4vKqUlrdys for more information.