The binary representation is the key. An Example:
Unsigned int in HEX
0XFFFFFFF = translates to = 1111 1111 1111 1111 1111 1111 1111 1111
Which represents 4,294,967,295
in a base-ten positive number.
But we also need a way to represent negative numbers.
So the brains decided on twos complement.
In short, they took the leftmost bit and decided that when it is a 1 (followed by at least one other bit set to one) the number will be negative.
And the leftmost bit is set to 0 the number is positive.
Now let's look at what happens
0000 0000 0000 0000 0000 0000 0000 0011 = 3
Adding to the number we finally reach.
0111 1111 1111 1111 1111 1111 1111 1111 = 2,147,483,645
the highest positive number with a signed integer.
Let's add 1 more bit (binary addition carries the overflow to the left, in this case, all bits are set to one, so we land on the leftmost bit)
1111 1111 1111 1111 1111 1111 1111 1111 = -1
So I guess in short we could say the difference is the one allows for negative numbers the other does not.
Because of the sign bit or leftmost bit or most significant bit.