A derby is a game which is played between two teams from the same town or city. There is usually a big rivalry in these games, some players even refer to derbies as cup finals, although these are usually the players who never get to a cup final.
For example, Manchester City vs Manchester United is the Manchester derby. Liverpool vs Everton is the Merseyside derby etc.
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The phrase "derby day" simply refers to the date of a sports event between two rival teams.
The Derby is an annual horse race held at Epsom racecourse (England) for four year old male horses.
It is a match between two local rival teams, for example Manchester City Vs Manchester United.