If you use "Recovery Mode", iTunes will automatically restore your device with the latest version of iOS for that particular device. With DFU mode, that choice is not automatic. You can direct iTunes to a specific .ipsw file to restore to.
Thank you so much for the explanation. I was wondering if it did anything different with the current settings or if you still had to chose new or restore from backup. I thought the DFU might be like doing the update OTA where nothing got changed. I think I will wait to do this until the next update comes out so I don't have to do it twice.