A Novel is a longer book with a much more complex storyline, while a Short Story is (as the name suggests) a much shorter story than a Novel, mostly focusing on character development with a fast-pased storyline. A Novelette is in between a Short Story and a Novel, being medium length and featuring two or three main events. It is still based on a simpler storyline than a novel.
Personally, my favorite type of literature is the Novel, simply because I like to binge-read books, and you cannot really do that with a shorter work of literature, because it simply does not take much time to absorb the information.
A few example of my favorite Novels are Tom Swift, Lad, and Buff. An example of a Novelette I like is Call of the Wild. And because I don’t really read short stories, I’m not going to put any examples here.