Google Drive – Is Revision History Shared When Sharing a Document?

The best way I found is to use named version. You can set names for each versions and you can compare current named version with previous named version. So the step is

1. Set names to two versions you want to compare with.
2. Turn on "Only show named versions".

Then you can see the difference between specific versions.

In order to be able to visually see the highlights and strikethroughs, you need to check the Show Changes box at the bottom of the right-hand column, then click on the named version you wish to view.

If you want to be able to use the same share link you need to upload your new file as a new revision not a new file. Every time you upload a new file it will generate a new share link. However, if you upload a revision it will keep the same share link every time.

To upload a new version of a file using the web interface:

1. Log into your drive and find the file or folder you wish to revise.
2. Tick the checkbox next to the file or folder.
3. From the dropdown that comes from the More button, click on Manage Revisions.
   a. If you are viewing a file it will be under the File menu.
4. A dialog box will appear in the top part of the box click the link "Upload a new revision"

Old revisions are kept per Google for 30 days or 100 revisions whichever comes first. Ofcourse from this same option you can delete or save revisions yourself.

Samples: