Sectional density (SD) is a numerical expression of a bullet's weight in relation to its diameter. It doesn't really correlate to anything in real life. Rifle bullets with SDs over about .250 tend to penetrate well. Pistol bullets, on the other hand, have relatively low SD's, but tend to outpenetrate rifle bullets. Go figure.
Ballistic coefficient (BC) is a numerical expression of a combination of several aerodynamic properties. It's based on SD modified by several form factors, many of which reside mainly in the eye of the beholder. Bullets with a high BC fly flatter and drift less in wind than those with a low BC, but the difference has to be pretty large to matter. BC changes with velocity and altitude, and can differ significantly below or above the speed of sound, so be careful about hanging your hat on it. Bullet makers can't fudge SD, but they can (and do) get fairly creative with BC. High BC figures sell bullets, so the best way to determine BC is to ignore what the manuals say and shoot your own drop tests.
Picking a bullet solely for SD or BC is an error, as both matter far less than accuracy or terminal performance as based on their performance in actual tests in your guns. A knowledgable shooter will understand the concepts of SD and BC but avoid getting wrapped around the axle on either one.
Hatcher's Notebook has a pretty detailed description of both terms, if I remember correctly.
Okie John