Google Canary is not for the average user who just needs to browse the net but is specifically designed for developers and tech enthusiasts looking to play around with the new features on the Google browser. Since the updates and new features first come to Canary, it is totally raw and has a number of bugs that still have not been fixed. So any changes first come to Canary, then make their way to dev, then beta and finally the stable version than average users use.
Canary is a step ahead of Stable, which means that it has untested, totally raw updates that have not even been released on Chrome.
This is the approved version of the browser, that has gone through the beta and dev versions, and has been vetted for bugs and irregularities by developers. Stable is what regular users know as Google Chrome, the one we use normally. Google releases updates through 4 channels: Stable, Beta, Dev, and Canary.
How do Google browser versions work exactly? This Alpha version of the Google browser does not install itself over the previous version, and is perfect for testing. Google Canary is really the cutting-edge version of a Google Browser, which means that even before the updates have been released on Google Chrome, developers can test them on the Canary.