Standing is better for projection because your diaphragm isn't compressed. However, you may be hearing better results not because of your position/posture but because of a shift in room acoustics.
Comb filtering is the biggest problem when recording vocals. It's caused by reflections off walls, floor and ceiling - generally, the closer a reflective surface is, the worse the problem. People often surround themselves with absorption to counter the effect, but often forget that the closest boundary is usually the ceiling, especially if you're standing. Hanging some rigid fiberglass from the ceiling is the solution for that.
As for hand-held versus stand-mounted microphones, I do like to hold the mic in my hand, as it's much more natural when trying to keep levels steady. However, it's not an option with most condenser microphones because they're subject to picking up handling noise. For a dynamic mic, though, hand-held is the way to go, IMO.