With your static version there will be only one variable which will be stored somewhere and whenever the function is executed the exact same variable will be used. Even for recursive calls.
The non-static version will be stored on the stack for every function call, and destroyed after each.
Now your example is a bit complicated in regards to what the compiler actually does so let's look at a simpler case first:
void foo() {
static long i = 4;
--i;
printf("%l\n", i);
}
And then a main something like this:
int main() {
foo();
foo();
return 0;
}
will print
3
2
whereas with
void foo() {
long i = 4;
--i;
printf("%l\n", i);
}
it will print
3
3
Now with your example you have a const, so the value can't be changed so the compiler might play some tricks, while it often has no effect on the code generated, but helps the compiler to detect mistakes. And then you have a pointer, and mind that the static has effects on the pointer itself, not on the value it points to. So the string "hello" from your example will most likely be placed in the .data segment of your binary, and just once and live as long as the program lives,independent from the static thing .