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ALT When Goku's aura is closer to the body and blue, he's currently using the form in a more precise way. Think about the fighting style he displayed against Broly in SSG where he actively uses Broly's rampage against himself. Or for anyone who has read One Punch Man, think about Bang's Ryusui Gansai-Ken (aka Water Stream Rock Smashing Fist).

ALT When Goku expands his aura and it takes the shape of a flame, it's because he's in need of more destructive power. His aura works more like a literal flame and makes it harder for him to get hit with full force by those who can't sustain the heat. The flame have an even stronger effect on those with an evil heart, but it doesn't affect the ones who were in the ritual or anyone that Goku don't want to get affected.