Keratosis obturans and primary auditory canal cholesteatoma are different clinical entities involving an accumulation of keratin in the external auditory canal. Keratosis obturans involves a large plug of desquaminated keratin, while primary auditory canal cholesteatoma is characterized by an invasion of squamous tissue causing localized bony erosion. The two conditions differ in their pathology, with keratosis obturans forming a layered keratin plug and cholesteatoma forming keratin within a sac involving the bone. Treatment for keratosis obturans typically involves removing the plug, while cholesteatoma requires surgically removing the abnormal tissue and bone.