According to ABC 11, AccuWeather explains that a tornado watch is usually sent out hours in advance to cover a broad area by The National Oceanic and Atmospheric Administration's (NOAA) Storm Prediction Center (SPC). It's meant to let people in a particular area know that the current weather conditions could become more serious.
However, a tornado watch doesn't mean that things will escalate. Consider this an official way of saying that you should be on the lookout for signs that a tornado could happen. If a watch is issued, it's important to look for follow-up weather alerts and be prepared to head to safety if things get more intense.
On the other hand, a tornado warning is usually focused on a smaller area, and they're issued after a tornado has either been seen by someone or spotted by radar. Because of this, you have to act right away. In more dangerous circumstances, a tornado emergency will be issued. These are typically put in place when the damage could be more severe or impact areas with a larger population.