Cuento vs. historia
In Spanish, 'cuento' and 'historia' both translate to 'tale' or 'story' in English, but their usage and connotations are different.
Cuento
A 'cuento' is typically a short, fictional tale meant for entertainment or moral teaching.
La abuela nos contó un cuento antes de dormir.
(Grandma told us a story before bed.)
Ese cuento de hadas tiene una princesa y un dragón.
(That fairy tale has a princess and a dragon.)
He leído muchos cuentos de Edgar Allan Poe.
(I have read many stories by Edgar Allan Poe.)
Historia
'Historia' can refer to any narrative of events, true or fictional. It also means 'history', referring to past events or academic study of the past.
Ella me contó la historia de su viaje a África.
(She told me the story of her trip to Africa.)
La historia de este país es muy interesante.
(The history of this country is very interesting.)
Estoy leyendo una novela que cuenta la historia de dos amigos durante la guerra civil.
(I am reading a novel that tells the story of two friends during the civil war.)
Summary
'Cuento' usually refers to short, fictional stories, often for entertainment or moral lessons. In contrast, 'historia' refers to any narrative (true or fictional) and also means 'history'.