The Nintendo Switch is named as such for its ability to switch between form factors.
You can take it on-the-go, as a handheld console! You can dock it at home and play games on your TV, as a home console! You can even prop it up on its built-in kickstand, detach the two gamepads, and play multiplayer games with a friend, as a standalone screen/console! Madness!
The Nintendo Switch Lite, however, isn't quite so verstatile. It's intended for one thing: Handheld gaming.
Like the Game Boy, Game Boy Color, Game Boy Advance, Nintendo DS, and Nintendo 3DS before it, the Nintendo Switch Lite is a portable game console. It runs the same games as the Nintendo Switch, but it can only be used as a portable game console.