Targeted Cases references the "Related" Case on a work item (Project, Milestone or Task).
how do targeted cases differ from ordinary cases
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Sorry your answer doesn't compute to me. doesn't read as English to me.
Are you saying that a Targeted case is one were you add a work item and a non-targeted case is one were you don't add a work item (after all the system doesn't demand that you add a work item to a case - good practice probably says you should though.)
Targeted Case is a list of all cases that have a given project named in the "Resolved In Project" field in the case. This field is populated automatically in many cases but can be overwritten.