Binary refers to a system which may have one of two states. In computer science the binary numbering system is used where stored and communicated values are represented by 0 and 1. A digital signaling system would be based on an underlying stream of binary numbers so in most cases the two would be used interchangeably. If "binary signaling" where to be taken literally however it would describe a signaling system which communicates two possible states. The flag on a mailbox is a binary communication system, when the flag is up it signals that mail is available for pickup, when it is down there is nothing in the mailbox.
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Digital
A byte is a single unit of digital information, made of of several bits of sequenced binary data.
An analog signal has a sine wave form and a binary signal has a block "wave" form. The binary signal is either on or off ("up" or "down"), and never anything in between. analog: http://img99.imageshack.us/img99/7723sineuk6.jpg binary: http://img154.imageshack.us/img154/1894binarypb6.png