The first distinction is the one a doctor makes too: vertigo, where the room or you are spinning, usually points to a vestibular cause. Non-specific dizziness — floating, unsteadiness, light-headedness, a sense of not being quite there — is what this page is about, and it has a much wider spectrum of causes.
The anxiety-linked mechanism is concrete and physiological. Under stress, breathing becomes faster and shallower, often without the person noticing. More carbon dioxide is exhaled than is produced, and its fall causes cerebral vasoconstriction — the vessels in the brain narrow slightly. The result is dizziness, tingling in the fingers and around the mouth, and slightly blurred vision. A fully reversible and fully real reaction.
What turns it into a problem is the interpretation. Dizziness is alarming, alarm speeds breathing, faster breathing deepens the dizziness. The loop is fast, and it is the core of many panic attacks.
The second mechanism is persistent postural-perceptual dizziness — a real diagnosis that often appears after a resolved vestibular episode: the balance system stays on heightened monitoring, and hypervigilance about your own stability produces exactly the instability it fears.