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Wood hatchet > crude hatchet (made of chitin) > flint hatchet> etc
One for tools (a hammer), another one for weapons (a sword).
They mean on the icon itself. Open up your inventory, look on the bottom corner of each item, there is a small white sword or hammer to tell you if it is a weapon or tool.
We're coming full circle for how confusing this can be LOL
Building Hammer = tool
Iron Hammer = badass blunt weapon
Hatchets = tool
Axe = weapon
Pickaxe=tool
most survival games the harvest tool calls "hatchet", not sure what survival game you hint at, ark = hatchet, conan = hatchet, 7d2d = hatchet "and yes they have axe that harvest too"