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A PowerShell script is simply a text file with a .ps1 extension that contains a list of commands PowerShell should execute. However, PowerShell's secure by default philosophy prevents all scripts from running, so double-clicking a PowerShell script from Windows Explorer won't execute it.
When a batch file is ran, the shell program (usually COMMAND.COM or cmd.exe) reads the file and executes its commands, normally line-by-line. Unix-like operating systems, such as Linux, have a similar, but more flexible, type of file called a shell script. The filename extension .bat is used in DOS and Windows.