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Difference of Remove Duplicate URLs and Remove Duplicate Domains?

Can someone please explain?
Please correct me if i'm wrong.
In remove duplicate urls, it will remove duplicates like these:
http://google.com/example
http://google.com/example
http://google.com/example
I mean, the domain itself.
But in remove duplicate domains, it will remove duplicates like these:
http://google.com/example
http://google.com/example2
http://google.com/example3
Am I right? Is it really necessary to remove duplicate URLs or domains? Please guide me. Thanks in advance!

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