all analogue signals produce a sound wave with value of anything between 0-1. this means there is a lot of room for interference and mis-signaling. analogue on a hi-fi is passed through two phono leads which supply the amp with two channels of analogue signals to decode. opitcal is a form of digital signal transfere, digital uses a code of 0's OR 1's in a binary code stylee. this means there is no room for interference. optical works by sending light signals down a fibre-optic cable in 0/1 form ( in digital 0 stands for on and 1 stands for off) giving the amp a single signal to decode.
coaxial is the standard form of analogue signal transferance, the two cables supply corresponding signals ( hence the 'co-') from an analogue source to an analogue recording device, cdr's record in an analogue format when decoded from analogue sources.
hope that helps...got a bit confused myself writing it...