Water or alcohol
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What alcohol gives you
Fragrance dissolves in it completely, it sprays as a fine dry mist, it evaporates fast and leaves nothing on a surface. For a linen spray that is close to ideal behaviour.
And what it costs you
It is a volatile organic compound. A spray that is mostly alcohol is mostly VOC by weight, which is the thing the limit exists to prevent.
The water route
Water carries almost no fragrance on its own, so it needs a solubiliser to hold the oil in solution. Get that wrong and the product separates in the bottle, which the customer sees through the glass.
And it behaves differently on fabric
Water is slower to dry and can mark some fabrics, particularly silk and untreated linen. That is a real product difference and it belongs in the directions rather than being discovered.
The sprayer has to suit the carrier
A water-based spray is heavier and needs a sprayer that atomises it properly; an alcohol spray attacks some plastics and adhesives. The carrier decision reaches the closure and the label stock.
Which is why the shelf has glass on it
57 glass containers out of 413. For an alcohol-heavy formula glass removes the bottle from the compatibility question and leaves the sprayer and the label.
There is no third option that avoids the trade
Every carrier that dissolves fragrance well is volatile, and every carrier that is not volatile needs help to dissolve anything. The craft is in managing that rather than escaping it.
A hybrid is the usual commercial answer
Enough alcohol to carry the fragrance and dry quickly, enough water to bring the VOC content under the limit, and a solubiliser holding the balance together. It is more formulation work than either extreme and it is where most of this category lives.
Decide it with a number, not a preference
Calculate the weight-percent for two or three candidate carriers before choosing. The decision is usually made on how the product feels and then discovered to be non-compliant, which is the expensive order.