Spanish Paprika is made from dried peppers. That's where the red-orange color comes from, but, as you know, just because two peppers are red, doesn't necessarily mean they taste the same. Paprika varies in flavor based on what types of peppers are dried and pulverized. The spice can range from mild to spicy, a little sweet to 100% savory.
Often labeled "pimentón," Spanish paprika is commonly made with smoked peppers, which, as you can probably gather, brings a deeper, smokier flavor to the table. The heat and sweetness levels in Spanish paprika vary based on the blend of peppers used. You might see dulce (sweet), agrodolce (bittersweet), or picante (hot) varieties at a spice shop or well-equipped grocery store. This isn't to say all Spanish paprika is smoked, but the Spanish varieties available to us most likely are. And when we're making something like paella, that's exactly what we're looking for.