There are three network types in Windows 7, namely, trusted network and untrusted network. The difference lies in the configuration of firewall policies, file sharing, and other functions.
The home network and work network are both trusted networks. If these two network types are selected, loose firewall policies are automatically applied to share files, printers, streaming media, and other functions in the LAN. However, when you select a home network, Windows 7 automatically configures the "home group", such as checking whether a home group exists in the LAN, configuring shared settings in the home group, and joining the home group.
A public network is an untrusted network. If you select a public network, a strict firewall policy is automatically applied to Windows Firewall to protect your computer from external computer intrusion in the public area.