The term "closed" in closed captioning indicates that not all viewers see the captions—only those who choose to decode or activate them. This distinguishes from "open captions" (sometimes called "burned-in" or "hardcoded" captions), which are visible to all viewers.

Most of the world does not distinguish captions from subtitles. In the United States and Canada, these terms do have different meanings, however: "subtitles" assume the viewer can hear but cannot understand the language or accent, or the speech is not entirely clear, so they only transcribe dialogue and some on-screen text. "Captions" aim to describe to the deaf and hard of hearing all significant audio content—spoken dialogue and non-speech information such as the identity of speakers and, occasionally, their manner of speaking—along with music or sound effects using words or symbols.