These are different Form content types defined by W3C. If you want to send simple text/ ASCII data, then x-www-form-urlencoded will work. This is the default. But if you have to send non-ASCII text or large binary data, the form-data is for that. link
Service is a very loaded term in computer programming that has all sorts of different meanings and connotations depending on the context you are using it in.
A Service in Domain Driven Design is simply a stateless object that performs an action.