The image represents the various classification of Earth's environment based on the altitude. To each zone correspond a certain type of climate, where certain types of plants for example can or cannot grow. That's called "Altitudinal zonation". Basically, the higher you go, the colder it gets. That's especially useful to describe the climate in tropical but mountainous regions, like Latin America.
Difference between tierra caliente and tierra fria:
Tierra caliente (warm land) level is the lowest and goes from sea level up to 2,000 or 3,000 feet depending on who you ask, and it's the perfect for fruits and most livestock for example.
Tierra fria (cold land) level starts at 6,000 feet. It's a zone where virtually no livestock can be found and only robust vegetables (like potatoes) can grow easily.
The main differences are of course their altitude but also, as a consequence of the altitude, the types of plants that can grow in each level, which are extremely different.
Have a Wonderful Day! (:
