From the page about Azure CLI Sign-in:
Service principals are accounts not tied to any particular user, which can have permissions on them assigned through pre-defined roles. Authenticating with a service principal is the best way to write secure scripts or programs, allowing you to apply both permissions restrictions and locally stored static credential information
It seems that a service principal is kind of a service account, a sort of identity which isn't tied to any specific person.
On the other hand, from here it seems that a service principal is an instantiation of the Application object in the domain of App registrations. This has something to do with registering an application so it can be authorized using OAuth 2.0 etc. etc.
So I can't understand the relation between these two concepts. Can someone help?