I'm new to sitecore and I'm slightly confused whether their sitecore digital management is also known as sitecore media library? Or is it a completely different solutions/product?
We have sitecore 9.1
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based on your version number I'm assuming the "Sitecore" you have is what is called Sitecore Experience Platform (or XP for short). It is one of the multiple products Sitecore sells. The DAM product is part of something called "Sitecore Content Hub", a separate SaaS solution. The DAM and the media library are very different things.
You can find an overview of Content Hub here: https://www.sitecore.com/products/content-hub
Content Hub is a SaaS product, so you don't install it, as you would with XP. It does have integration into Sitecore Experience Platform, allowing you to use the assets in Content Hub within your web channel. You can think of Sitecore XP as the place your web channel puts together the content and layout as something that will be delivered. Content Hub is aimed more at the marketing team as a work area for them to create and manage various assets for all of their channels (web, mobile, email, print, etc.). The DAM part of Content Hub is specifically for media assets, but there are other parts of Content Hub that can be purchased as well.
As they are separate products, they are also licensed separately. A common scenario would be to have a marketing team working together on their workflow for their DAM assets in Content Hub and then sharing with the web team that is building the site via the Content Hub to XP integration.