Embedded Mode: This requires less configuration & it is preferred for testing purpose.
As per drill docs:
Drill in embedded mode installs Drill locally on your machine. Embedded mode is a quick way to install and try Drill without having to perform any configuration tasks. A ZooKeeper installation is not required. Installing Drill in embedded mode configures the local Drillbit service to start automatically when you launch the Drill shell.
Distributed Mode: In this mode, drill runs on one or more nodes in a clustered environment. Running a ZooKeeper quorum is required.
As you asked, for live project you should use distributed mode. If you are using any hadoop cluster, you can install Drill on the same cluster. You need to install Drill on all the nodes. Check docs for more details.
Edit:
As you are new to Drill, for POC purpose you should use embedded mode.