What are the use cases for defining distances in a web layout for pixels and percentages?
Is there any downside to using pixels with respect to multiple resolutions? Will they scale correctly?
This is generally referred to as fluid layout. Your elements will take a defined percentage of the total space available to them. This available space is determined by the element's parent.
When using percentage layouts, it's a good idea to specify a min-width and max-width on your design so that it remains usable at very low and high resolutions.
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This is usually known as fixed layout. Your element will always be the same defined pixel size and will not take available parent space into account.
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