With respect to software versioning, patching will upgrade a software's maintenance version number, and updates upgrade their minor version number.
In most cases, the versioning follows this pattern:
Major.Minor.Maintenance.Build
Where the first three are single digit, the last three or four digit. So a version number 2.1.1.089 is the second major version, first minor revision (so there has been one update), third maintenance build (so three patches), and build 089 (no significance to builds/patches).
In most cases, patches update the third number, the maintenance version. Updates update the minor version number. Furthermore, patches usually fix problems, whereas updates can both fix problems as well as add new features.
The Wikipedia article on software versioning is an interesting read. The reason I specify the M.M.M.B style is that it is commonly used in Visual Studio during application development.
In some cases, however, the last number (build) is omitted - for end users, rarely is this ever needed. It's mostly for development purposes only.