Hydration vs Moisture
The two words are used interchangeably in marketing and mean different things in practice. Hydration is water content. Moisture, in the sense the industry uses it, is the oil and lipid content that keeps that water from evaporating away.
That gives two distinct problems. Dehydrated skin is short of water: it looks dull and flat, fine lines are more visible in the morning, it can feel tight yet still produce oil, and it is a temporary state that any skin type can be in. Dry skin is short of lipids: it flakes, feels rough rather than tight, and is a skin type rather than a condition. Oily-dehydrated is the combination people most often misdiagnose, because the oil convinces them to strip further and the stripping deepens the dehydration.
The fixes differ accordingly. Water is added with humectants — glycerin, hyaluronic acid, panthenol, urea — applied to damp skin so they have something to draw on. Lipids are added with emollients and occlusives: ceramides, squalane, shea butter, petrolatum. A humectant alone in dry air can make things worse by pulling water up to a surface that cannot hold it, which is why the layering order matters more than either product does.
Practical test: if skin feels tight but looks shiny by midday, treat the water. If it flakes and feels rough, treat the lipids. Most people need both, in that order.