One thing that is often asked when it comes to stain is, what is the difference between water and oil based? As often as this question comes up and as easy as it may seem to answer, it will make a difference what you choose depending on the surface you apply it to. The simple answer is as obvious as it sounds, however they have different properties and protect the surface in different ways. Also, one is a better choice than the other depending on if you're staining something that is outside compared to a piece of furniture that sits in your living room.
Water based stain is easier to apply and will dry faster. If you use a sprayer to apply it, the risk of overspray goes down because it dries in the air very quickly. It is used more often than not by DIY'ers because its not as messy and you don't need much experience to get a good looking final product. Water based stain also is a lot easier to clean up. Often just soap and water are needed. It can usually be cleaned off of surfaces easily if spilled compared to oil based. Basically, any big box store or hardware store that carries stain has water based.
Oil based stain on the other hand requires a little more experience, prep work and caution when applying. However, if you know what you're doing oil-based stain will yield a better looking final product and typically last a little longer if the prep work is done correctly. Cleanup is messier and will require mineral spirits or paint thinner so it literally pays to do more masking and prep work to avoid spills, drips and overspray. Oil based will take longer to dry and sometimes you only need one coat. If you decide to spray oil based it comes with the risk of overspray. Unlike water-based stain oil-based stain takes longer to dry and the particles in the air are smaller so it can literally float with the wind and get on something that's a block away. This is why it requires more prep work and experience.
Oil based will typically be a little more water resistant, however if it is a one coat product you will most likely have to re-apply more often. Oil based over water based may also be a little more expensive and harder to find. Water based stain typically has more options on the other hand to choose from. Typically, if what your staining is going to be an outdoor piece like a bench or fence/deck a 2 coat oil based product is a good way to go. If you're in a climate with a lot of moisture this is a good route. If you're staining an indoor piece depending on experience and preference a water-based product is a good route due to it being easier to clean up and apply. You'll also notice a lot of times oil-based stain has a stronger smell and higher VOC content (Volitization of chemicals). This is another reason water based is good for indoor projects. In the end its better to stain and protect something that's not already coated then leaving it bare. One last thing to know is, that if something is already stained and you want to re-stain, avoid applying an oil-based stain over a water-based stain because it will not properly adhere. But you can apply a water-based product over an oil-based product when prep work is done correctly.