Observational studies are those in which the researcher does not influence the phenomenon he is studying. As the name states, he simply observes as the phenomenon takes place. On the other hand, experiments require the researcher to interfere with the phenomenon, or cause it, in order to study it.
An issue that can arise from observational studies is that, due to the lack of control that a researcher has, it is not always easy to determine the conditions that are necessary for that phenomenon to take place. In the case of experimental studies, one of the problems is that experiments are usually reduced to the natural world, as experimenting in the human world raises many ethical problems.