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It all depends on the scope of the CSS. If you know the CSS is going to only ever apply to that page, keep in within the <head> section. It'll load faster because the client doesn't have to make another request to the server.
If the CSS is going to be applied to more than one page, use a link option. That way updates will only have to be done once, and as SilatPupil said, the document will be cached. You may want to use @import instead of Link, to hide CSS from older browsers (they won't even download it). Depends what you're doing with it though...
Don't forget you can also use inline styles, by setting the style attrbute
<div style="border: 1px solid red;">
but use them with care otherwise your page gets messy. Usefull for testing what CSS looks like quickly before moving it somewhere else...
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