They're different animals, with different uses.
The dials with a telescopic needle are dial gauges. They usually have a significant travel, 12mm or more. They are used to measure parts or travels. They can be used in a stand on a surface plate as a comparator or on a machine tool carriage to measure distance. The latter was common prior to the introduction of DROs.
The dials with a pivoted needle are dial test indicators (DTI). They are used to set parts or fixtures true. While they are marked with dimensions they actual dimension changes with the position of the pivot. So they are not used for absolute measurement but to indicate relative movement.
I've got several examples of both, but use the DTIs orders of magnitude more frequently that the dial gauges. Two common uses for the DTI are setting work running true in the 4-jaw chuck and setting the machine vice jaws parallel to the table on the milling machine. My DTI lives in the workshop on a magnetic base ready for use, by contrast the dial gauges are in the tool store, aka the dining room.
If you're only going to buy one, get a DTI. And buy a quality one; there's nothing worse than a sticky needle on a DTI.
Andrew