Many ISPs run a Google cache server which caches a lot of Google-specific data local to your internet provider. This would mean that there's a much shorter path between your home connection and the cached data, but non-cached data would be retrieved externally. I wouldn't be surprised if popular YouTube videos are part of this. Here's some more info: https://support.google.com/interconnect/answer/9058809?hl=en
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You want to read about "content delivery networks" (CDN).
Probably, but YouTube also compresses popular videos more aggressively, so you need to download less data to watch a second of video.