An oiled floor wears where it is walked on and can be repaired where it has worn. The worn patch in front of the sink or at the foot of the stairs is cleaned, lightly abraded and re-oiled with the manufacturer's maintenance oil, and the repair blends into the floor around it. The rest of the floor is left alone. That makes oil the finish for a hallway or a kitchen, where wear is local and predictable.
A lacquered floor wears more slowly and cannot be repaired locally: a patch of new lacquer shows as a patch. When the film has worn through, the whole floor is sanded and refinished, which is a bigger job but a rarer one. That makes lacquer the finish for a living room, a bedroom or a dining room, where wear is spread and slow and the floor is mostly wiped clean.
Both finishes dislike standing water, and the trade guidance for cleaning wood and multilayer floors is low moisture throughout: a damp mop, not a wet one, and no pooling. The industry statement of that rule is quoted at the end of this guide.