When I visit settings and then Photos+Camera it offers me to set default camera app so I'd like to know difference between them
Microsoft Camera is the default camera app that is pre-installed in not-so-recent Windows Phones (since recent Windows phones, such as the L535, no longer have Microsoft Camera). It is not limited to Lumia phones.
Lumia Camera, on the other hand, is a separate app that is not pre-installed on all Windows phones. It is exclusive to Lumia phones. In more recent phones, the Lumia Camera app has completely replaced the native Microsoft Camera.
Some of the differences among these two apps are:
1. User interface and customization options - Lumia Camera offers a "more intuitive" interface that allows the user to customize the parameters of the camera without having to open up a bunch of settings pages.
2. These two apps also do not have the same ISO values and shutter speed values.
3. The digital zoom (if available for the device) level is different between these two.
4. Microsoft camera only takes a 5MP photo, while Lumia Camera takes a full-resolution photo in addition to a 5MP photo.
5. Depending on the device, Microsoft Camera generally launches faster than Lumia Camera.
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