a neighborhood is a more general kind of concept than a ball.
a ball is one kind of neighborhood. there are other kinds, some of which give rise to different topologies, and some of which give rise to the same topology as open balls. for example, instead of balls, one can use open boxes, or open tetrahedra, all of which represent different ways of generalizing open intervals on the real line.
one thinks of neighborhoods as being sort of small fuzzy regions around a point. the idea of neighborhood makes more sense when you have a space where you have no way of measuring distances, so you use a neighborhood system to determine when a point is near a set.
one advantage to using neighborhoods instead of balls in sets (spaces) where you have no metric (distance function), is one can use neighboorhoods to define a filter, which can be thought of a a collection of sets that "zero in" on a point they are a neighborhood OF. filters allow one to define convergence and limits even when you don't have epsilons and deltas anymore.
since filters are very general, and neighborhoods themselves can be quite varied, it's usually easier to develop an intuition of how they behave by examining the specific kind of neighborhood, an epsilon-ball in Rn, in some detail and using that as a guide.