SMO is smooth; OP or "orange peel" is textured much like the surface of an orange. SMO reflectors will give the greatest throw (all other factors the same), while OP reflectors give a smoother beam pattern at the cost of throw.
In general the difference is that a OP (Orange Peel) is used to smooth out or make less noticeable any clutter, cree rings, or other otherwise noticeable defects in a flashlight beam profile. This is done by rippling (like the peel of an orange) the surface of the reflector, and is considered to be at the expense of some throw. A lot of people prefer SMO (Smooth) reflectors for lights where the goal is to acheive maximum throw. The smooth will throw further but it will also more clearly show any small defects in the beam profile. A smooth reflector will have a surface like a mirror, no rippling effect.
So depending on what your goal is for a given flashlight, a different reflector style might be desired. Some level of Orange Peel is usually wanted unless the goal is maximum throw, and what level of beam defects are acceptable gets way into the subjective realm and you will find a wide variety of opinions on that.