The following definition is taken from The Bedford Glossary of Critical and Literary Terms.
A tale is a comparatively simple narrative, either fictitious or true, written or recounted orally in prose or in verse. A tale often recounts a strange event, focusing on something or someone exotic, marvelous, or even supernatural. Tales may be attributed to a particular author, whether known or anonymous, or may be simply be part of the lore of a given culture. Whatever their origin, tales tend to be relatively shorter narratives; nevertheless, the term is broad enough such that critics and authors have applied it to longer works ranging up to full-length novels.
The tale places more emphasis on actions and results than on character, which is the chief focus of a short story. Furthermore, tales are more casually constructed--and, consequently, far looser in terms of plot and structure--than short stories, which bear the mark of an author's careful and conscious fashioning.
Mr. K's comment:
"Fishing tales" and "ghost stories" and "fairy tales" are a bit shorter than traditional myths. The point to these tales is a clear beginning, middle, and end; all in all, a "tale" can lend itself to hyperbole, overblown exaggerations. Just remember the last time someone told you an outrageous "tale" about . . . this one time . . . in band camp . . .