A variety is usually defined to be the zero set of some polynomials. I don't know much about this, but I think people usually call manifolds that can be realized as varieties "algebraic manifolds". Take for example the polynomial $x^2+y^2-1$, then the zero set of this is $x^2+y^2=1$, or the circle $S^1$. So that is an algebraic manifold.
There can be varieties that are not manifolds, for instance, $y^2-x^2(x+1)=0$ is a "nodal cubic" and so it has a singularity at $(0,0)$. It can't be a manifold because it looks like "X" a cross at the origin so is not homeomorphic locally to $\mathbb{R}$.
There is a very useful theorem, sometimes called the Regular Level Set Theorem, which says that if you have a smooth map $M\to N$, then the level set of a regular value is a smooth manifold. So in this particular case, our polynomial $f:\mathbb{R}^n \to \mathbb{R}$ is a smooth map, and we care about whether or not zero is a regular value.
This amounts to checking whether or not the matrix $(\frac{\partial f}{\partial x_1}(c), \ldots , \frac{\partial f}{\partial x_n}(c))$ has rank 1 at all $c$ such that $f(c)=0$. i.e. if at least one of the partial derivatives is non-zero. This can easily be extended to work if your variety is defined by a bunch of polynomials $\mathbb{R}^n\to\mathbb{R}^m$.
This has a name, called the Jacobian criterion, and for varieties it says that if the Jacobian has full rank, then the variety is non-singular. But these two things are equivalent (Jacobian criterion for non-singular variety and the level set theorem to be a smooth manifold). Thus every non-singular variety is a smooth manifold (Just to be clear, this was considering "variety" to mean a zero set of a collection of polynomials over $\mathbb{R}$)
So to reiterate, some varieties are manifolds (if the defining polynomials satisfy a certain condition on partial derivatives) and some are not. Is every smooth manifold a variety? I think not, but it seems harder. A quick Google search turns up a result that seems to say every smooth compact manifold is algebraic.