Your answer lies in the exact wording.

What does X look like?

You are explicitly asking about the look or appearance of something. You are using look to mean:

to appear or seem

If you took this question literally, your answer would focus on the appearance of Canada.

It looked beautiful: there was such a great balance between urban architecture and green spaces.

However, you could interpret look more figuratively. This would depend on context. For example, if you are talking about global economies and someone asked what Canada looked like, your answer could be about the financial landscape of Canada.

Person 1: The stock market has been so strong in the US lately. What does Canada look like?

Person 2: Pretty similar with the exception of the bumps in the oil industry.

Your first question is more general and is a better starting point for a general discussion. If I had a friend returning from a foreign trip, I would start with the general question. For example:

Person 1: What was Europe like?

Person 2: It was great - so different from North America. I loved the music and theatre scenes, not to mention the beautiful scenery!

Person 1: Oh, yeah? What does Europe look like?

Person 2: Beautiful green meadows with mountains in the background. It's exactly as you see in the postcards.

The conversation starts with generalities. Person 2 can talk about various aspects of her/his experience in Europe. Person 1 asks specifically about looks when the topic comes up.