Terms can make things seem so complicated but this one is an easy one.
Open Baking #
Baking either with a Dutch oven without the lid on from the beginning or on a baking tray or similar. It basically means baking without a lid on.
Closed Baking #
Baking in a Dutch oven with the lid on for the first part of the baking process.
Results #
Closed bake: For a softer crust, you will bake with the lid on longer than with the lid off. Adjust until you get the desired texture of crust. Use a silicone sling to help with the bottom from burning. You are less likely to have the bottom explode out of the side when doing a closed bake method.
Open bake: For a softer crust, place a deep-dish metal tray with 1 in of water and place it in the oven during the preheat stage. Use a silicone mat on a cookie sheet to help the bottom from burning. The deep-dish tray underneath the dough will also help the bottom from burning. There is a higher chance of the bottom exploding out of the side of your loaf (as you can see in the photo below) or the development of cracks. This does not affect the overall loaf. It’s only cosmetic.
For a more in depth look at how Dutch Ovens are used in Sourdough baking click here