What is DDS?
DDS is DirectDraw Surface, the texture format games ship. Its point is that the GPU reads the compressed blocks directly, so BC1/BC3 textures never need unpacking at runtime. FileSorcery reads it and converts out; writing good block compression is a job for a dedicated compressor.
What is BMP?
BMP is the Windows bitmap: pixel values written out with essentially no compression, which makes the files enormous and the format trivial to read. It survives in Windows tooling, embedded systems and anywhere a program wants image data without a decoder in front of it. Rows are stored bottom-up.