Welcome to Android Central! Rebooting doesn't clear app caches or data--it just closes all apps, powers down, then power up again. Rebooting can be helpful if there's some app that is misbehaving and otherwise difficult to stop.
Clearing an app's cache will remove any temporary data it may have stored. This is not data that is crucial to its functioning, and does not include any personal settings or data. An example would be the browser, which can cache website data for easier retrieval if you go back to it any time soon.
Clearing an app's data may remove important data related to the app, like username and password (so you'd have to login again), settings, and possibly any data you've saved (like saved games).
Separate from that, a cache partition wipe (which can only be done from the Recovery Menu) clears out the system cache, which holds various temporary system data like apk files downloaded from Google Play when you install an app.