1 Answers
Well, it is more from compliance requirements.
1. Dedicated instance means your instance will not be mixed with any other AWS accounts.(AWS may allocate a few instances from your own AWS account to share the same physical host). So when you stop and start your instance, it can run on another physical host, but it will still not be mixed with others.
2. Dedicated host means your instance will always run on the same host. So when your stop and start your instance, it remains on the same physical host. The use case is software licence linked to host ID.
To answer your question, yes, dedicated instance can be run on another host (not dedicated).
https://www.youtube.com/watch?v=sOsALtwltLQ
(voice is not very clear but the diagram is good.)
https://www.youtube.com/watch?v=Rj5B–a-kvY
(starting from 17:35)