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I am trying to understand the basic difference between a criteria and condition during the different processes that are built on Salesforce.

This is what I understood, let me know if I am on the right track

Criteria: Initial entry point which defines the start of the action to be taken. For e.g: When an Account record is created/updated... do something

Condition: Specifics about the defined criteria which makes the action execution on very specific terms For e.g: When Shipping Zip Code on an Account is updated.. do something

If the above understanding is correct, is it safe to say the condition is a specific implementation of a criteria?

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Criteria and condition are used interchangeably. I believe as of Winter '18, (almost) all of the UI reads "criteria", but if you happen to see "condition", it's the same thing. The criteria or condition of a rule is the data that must be true before the rule will be carried out.

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