I know motels are only two stories and hotels are like 10 (minumum) stories, but is there any other differnces?And whys it called a motel?

Hotel has more items to make your stay better. Such services like cleaning service, valet, business centers, first class restaurants, clubs, shuttle buses to the airport, etc. The rooms are usually indoors. Hotels can have 3-10 floors, depends are the area

most Motels are just a room with usually a TV. A Motel was named because it was Motor (in older times, most were near a highway) hotel. Most are, as you state, two to three floors. The rooms tend to have outdoor enterances to the room