Without taking away from RHD's answer at all, I could say "what is the difference between any SQL and any database?". One is a language and one is a database. This has nothing to do with Progress version or, for that matter anything Progress-specific.
A couple of notes.
The ABL has a simple subset of SQL-89 embedded within it. Don't use it for any but the most trivial tasks. Any production use within ABL should almost certainly be ABL.
The embedded SQL-89 and the external SQL-92 have nothing to do with each other. The former is embedded in the ABL engine and the latter is separate.
ABL is compile time optimized. SQL is run time optimized.
ABL is record oriented. It does have some set-oriented functions, but mostly in the end it works record oriented. SQL is set oriented.
SQL has some capabilities we don't have in ABL (grumble, grumble) notably the compile time optimization and the ability to do no-index searches.