An album is
loosely a collection of tracks with the same album name. More specifically if the tracks also all have the same *Album Artist* or
Artist values or have *Part of a compilation* set true then it will be considered as an album. Playlists are really for gathering together tracks from different albums in an order of your choosing whereas albums generally match an original CD.
I don't know the detailed mechanism behind *Get Album Artwork* but it can occasionally fetch the wrong art, or none at all, even when the iTunes Store sells the album. Sometimes a careful misspelling of the album name is required to coax iTunes into recognizing the album, although it's probably much easier to seek the assistance of your preferred web search engine.
See my article on
Grouping Tracks Into Albums for more details on albumness.
tt2