compressor is a device in which signal gain decreases as input level is increased. Dynamics is arange of sound from the quietest to the loudest volume. Human dynamic range of hearing is 120db and dynamic range of 120db will give an impressive number coinciding nicely with 120db human hearing.
A limiter is a compressor that wont allow most of the output over aset of threshold. its ratio is usually at or above 10:1 and while a clipper limiter ratio is 100:1. in general, compressors dlimiters do help a lot is reducing signal from distortion