In agile development, an iterative approach or continuous improvement is used. This means repeating a process until the desired result is achieved.
The idea is to develop a first functional version of a product component. This version is not meant to be perfect, but to be usable by users in order to be tested in real conditions and then improved. This is how you can identify bugs or unmet needs as soon as possible, and rectify the situation.
On the other hand, an incremental approach induces product development piece by piece. Waterfall model methods divide the project horizontally, i.e. site by site. In agile model, the vertical incremental approach aims to successively build functional elements.
The image below illustrates the concepts of iteration and incremental: