When to use 'Czy', 'albo' or 'lub' ... because they all mean 'or'
In a nutshell:
These rules are not cast in concrete but a good starting point.
The following explanation assumes you understand cases - if not see Polish Language Cases - Which case to use and when page.
 English |  Polish |
|---|---|
| You want coffee or tea? |
Here you see "coffee" and "tea" are written in the accusative case (the case used after a verb - in this case "to want"). That's because we are 'accusing' the person of wanting one or the other making this the polite way to ask. We assume they will want one of the two.
Substitute "czy" with "albo" in a question and you get this:
| English | Polish |
|---|---|
| You want wine or beer? |
Now you see "wine" and "beer are in the Genetive (something is missing) case - because "albo" implies they might not want either. That's not polite, your guest must want one(!) so we don't use "albo" in questions but rather in statements.
| English | Polish |
|---|---|
| I want to buy a computer or a laptop | |
| You can buy a tablet or a notebook | |
| I want to have a small house or a big apartment |
"Lub" is predominantly used in written Polish but you would be understood if you used it verbally, it's just that "albo" flows better when you are speaking. But you're not executing some massive grammar error if you mix up the two!