Straight from the Oracle Documentation...
https://docs.oracle.com/database/122/SQLRF/Data-Type-Comparison-Rules.htm#SQLRF30027
Blank-Padded and Nonpadded Comparison Semantics
With blank-padded semantics, if the two values have different lengths,
then Oracle first adds blanks to the end of the shorter one so their
lengths are equal. Oracle then compares the values character by
character up to the first character that differs. The value with the
greater character in the first differing position is considered
greater. If two values have no differing characters, then they are
considered equal. This rule means that two values are equal if they
differ only in the number of trailing blanks. Oracle uses blank-padded
comparison semantics only when both values in the comparison are
either expressions of data type CHAR, NCHAR, text literals, or values
returned by the USER function.
With nonpadded semantics, Oracle compares two values character by
character up to the first character that differs. The value with the
greater character in that position is considered greater. If two
values of different length are identical up to the end of the shorter
one, then the longer value is considered greater. If two values of
equal length have no differing characters, then the values are
considered equal. Oracle uses nonpadded comparison semantics whenever
one or both values in the comparison have the data type VARCHAR2 or
NVARCHAR2.
The results of comparing two character values using different
comparison semantics may vary. The table that follows shows the
results of comparing five pairs of character values using each
comparison semantic. Usually, the results of blank-padded and
nonpadded comparisons are the same. The last comparison in the table
illustrates the differences between the blank-padded and nonpadded
comparison semantics.