Hi Sathish,
Please find below the details
ParamDisplayValue() - Displays the value of 'Display Value' item (Value Prompt Property)
ParamValue() - Displays the value of 'Use Value' item (Value Prompt Property)
So suppose you create a parameter called product in your report Which can be based on ProductID/ProductName
So using Paramvalue() you can filter out data of your report based on product the same can also be ac hived using display value,But as filtering on character field impacts on report performance you should go with ParamValue in this case.
Param Display value can be very usefull for creating Layout calculations
Hope this helps:)