Different grades of aluminum foil sheets are distinguished by their thickness, strength, and purity. Grade 1 is the purest and softest, used for food wrapping and baking. Grade 2 is harder and more tear-resistant, suitable for heavy-duty use like grilling. Grade 3 is an alloy and offers high strength and durability, often used in industrial applications. Grade 4 is a heat-treatable alloy, providing high strength and used in aerospace and automotive industries. Each grade has specific applications based on its unique properties.