List<> is implemented using an array.

If you don't know how many elements you'll have, use List<>

You can give the estimated (or maximum) number of elements you expect in the capacity constructor parameter (new List<String>(10)), this will be the initial size of the underlying array.

When you Add() an item and there is no room for this item, the underlying array is copied to a new array of double the size.

List<String> is implemented using an array String[].

If you don't know how many elements you'll have, use List<String>

You can give the estimated (or maximum) number of elements you expect in the capacity constructor parameter (new List<String>(10)), this will be the initial size of the underlying array.

When you Add() an item and there is no room for this item, the underlying array is copied to a new array of double the size.

What I do: when I know the exact size of the collection and I know I won't change the size of the collection, I use an array (String[]). Otherwise I use a List<String>.

By the way, this goes for any type and not just String.