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Fiction
Fiction works can be classified based on their style and length of the writing. Fiction is writing based on the author's imagination and invention of a story, characters and/or backdrop.
Novels
Novels, novelettes (also known as "novelet") and novellas all contain the same subject matter but exist along a spectrum in terms of word length. Novels, at the far end of the spectrum, may have numerous conflicts, story lines, and chapters, and generally have 40,000+ words.
Fiction refers to a story containing imaginary or made up events. A novel refers to the length of a work of fiction. It's usually considered the longest form of literary prose. Shorter works of fiction would be a novella or a short story. Also, fiction can refer to things outside of writing. Movies and plays, would be considered works of fiction