Vegetable Oil vs. Canola Oil. Canola and vegetable oils are both plant-based oils that are liquid at room temperature. They're both beneficial for heart health, and are commonly used in cooking and baking. Therefore, it may be difficult to determine which type of oil is the better option for you -- but subtle differences do exist. What Oils Are Made From. The main difference between vegetable and canola oils is the type of plant they are made from. Canola oil is extracted from rapeseed plants, which are related to mustard and cabbage plants. Vegetable oil on the other hand, is no other than soybean oil in many cases.