Does this mean that IPhoto is on my computer 2 different places?
No. They are different things (although they are related).
The icon in the Dock is an alias to the iPhoto application (program).
The icon on your Desktop may be your iPhoto Library (the package that contains all your photos) ... or it could be an alias to your actual iPhoto Library. If it's an alias it will have a little black arrow in the lower left corner. An alias is only a pointer to an actual object (file, folder, program, etc.) not the object itself. But it behaves the same way as the real object. I hope that makes sense.
If the two icons are what I think they are, they should not look the same. The iPhoto app icon looks like a small picture with a camera in front of it. The iPhoto Library icon looks like a stack of pictures. Is that what you have?