With single-precision floats, considering the worst case, i.e. longitudes close to the equator but far away from the prime meridian, one ulp can translate into as much as 1.68 m (5.5 ft) of distance on the surface (*). That's good enough for some uses, but not for dGPS or any other serious geometric computation. Whereas, with double precision, one ulp in this worst case scenario corresponds to about 3 nanometers. It's overkill, for sure, but if these are the only two types you have, you pick the latter.
* = To represent the integer 179, you need 8 bits, leaving only 16 for the fraction. Since 1 degree of longitude near the equator is about 110 km, you have 1/2^16 degrees * 110 km/degree giving 0.0016784... km.