Most games run directly off of the solid state hard drive in your game console nowadays instead of the rotating disk, because it can render and process data quicker and more efficiently. The game disk comes with the full game but will usually require you to download it to your hard drive for that purpose.
The disk is required after that point for authentication purposes, to ensure that friends and family aren’t passing one disk around for multiple consoles.
If it’s a digital download that you bought from the online store, an internet connection is usually used in place of the disk in order to authenticate every time you boot up the game.
So basically you have to consider which form of media would be more benificial to you for each given game. If it’s a game that you want to be able to play offline whenever you are traveling or your wifi is down, a disk is better. If it’s a multiplayer game that is mostly played online anyways, the digital download is fine is you don’t want to worry about swapping or losing the disk.
Either one is going to take up about the same amount of space on your hard drive.