UV unwrapping is the unfolding of a 3D mesh surface onto a flat plane. That involves creating seams where the mesh will be cut and deciding where any distortion introduced in that process will lie. The main aim is to keep individual surface elements (UV islands) from overlapping and to try and keep the scale even.
You are not limited to unwrapping onto a single square. Unwrapping onto several squares is a common process and gives scope for more detail on the model.
UV projection is slightly different. That refers to how a texture is projected onto a surface. In UV projection it is projected onto the flattened UV map. There are other projections, (Substance Painter offers several) such as tri-planar where the texture is projected onto the 3D surface in all three dimensions, regardless of the orientation of the UV islands. Which works best depends on both the model and the material being projected.
Dave