Hello stitcheasy...I'm Karen from the UK and over here we use teatowels for drying dishes....dishcloths for washing them.....flannels for washing our faces and hand towels for drying our hands!
I dont think it's a silly question at all,its great to find out what people in other countries call every day items! I have a friend in the USA who one sent me some 'tip towels' which seemed to be a little smaller than a hand towel but bigger than a flannel, but they're much too pretty to use for anything!

Tea towels are smaller than dish towels and often linen or cotton. Many are used for show in the kitchen and people collect them.

Here is a link that might be useful: Examples of tea towels