A bit is the smallest unit - it can only be a 1 or a 0.
A byte is composed of typically 8 bits which combine to form something simple like a letter (i.e. Z).
I have never understood why computer storage is not saved by a system of 10s, but IU states that computers use "binary math." Thus, a kilobyte is 1,024 bytes instead of 1,000.
The largest denomination of space I have ever used is a terrabyte (TB) which is 1,099,511,627,776 bytes.
IU has a table of the equivalencies of each of these different sizes which I found very helpful. It is:
| Unit | Equivalent |
|---|---|
| 1 kilobyte (KB) | 1,024 bytes |
| 1 megabyte (MB) | 1,048,576 bytes |
| 1 gigabyte (GB) | 1,073,741,824 bytes |
| 1 terabyte (TB) | 1,099,511,627,776 bytes |
| 1 petabyte (PB) | 1,125,899,906,842,624 bytes |