If I am in SQL server DB and create a user, and I am in as my normal non-admin account, and then go in as my local admin, and create another user. What is the difference between each login, if any. Does setting up a user when you are logged in as admin or non-admin make the new user set up any different by default or is it only the capabilities you have to give that user is limited with a normal account, whereas admin can give elevated permissions etc?
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You can only grant to another user what you have authority to grant. Other than that, there is no difference between users creating another user.
Use roles and assign users to roles and give the role the permissions