What CSV is
CSV is a text file where each line is a row and commas separate the fields. There is no type system, no formatting and no second sheet. Every value is text until something downstream decides otherwise.
Almost every database, analytics tool and spreadsheet can read and write it, which is why exports default to it.
What XLS is
An Excel workbook is a zip archive of XML parts describing sheets, cells, formulas, styles and charts. The .xlsx extension is that format; .xls is the older binary one from before 2007.
Finance, operations and anyone who received a file from finance or operations.
What changes when you convert CSV to XLS
Reading CSV means deciding three things the file does not state: which character separates fields, how quotes work, and what encoding the bytes are in. Tablizer sniffs the delimiter from the first few lines, handles quoted fields containing commas and newlines, and reads the file as UTF-8.
You get a single sheet with a header row and column widths sized to the content. Values are written as text unless type inference is on, which keeps identifiers like 0044 or 007 intact.
What carries over from CSV to XLS
One property of the CSV has no home in Excel, and it is worth knowing which before you convert.
Excel wants a type for each column, and CSV does not record one, so each column is typed from what its values look like. A column of digits that should stay text - a zip code, a phone number, a leading-zero id - is the usual thing to check afterwards.
CSV can be read one record at a time. Excel has to be complete before it means anything, so the whole table is held in memory while it is written and a file that gets cut off part way through is not partly usable - it is unusable.