A latch is not a type of flip-flop; rather, it stores data based on the level of a clock signal, while a flip-flop captures data on the edges of the clock signal. Flip-flops can be constructed from gated latches, which are themselves derived from basic latches. The discussion suggests experimenting with a 74LS series gated latch chip to create a flip-flop. Additionally, a gated SR latch can be utilized to form an SR flip-flop by incorporating a custom pulse transition detector to convert level changes into short spikes. Understanding these relationships clarifies the hierarchy of latches and flip-flops in digital circuits.