You can choose which kind of code you're going to enter; the outer opening and closing tags (< ?php ... ? > , < script > ... < /script > ) are generated by the module. Depending on the code type you choose the background color of the input field changes.
Beneath real code you can use Code2 also for displaying internal comments for page editors, that means, give some special remarks there which are not shown in the frontend. An "Admin comment" can be seen by all backend users whitch access permission to this page, but only changed by members of the admin group, while a "internal comment" can be seen and changed by every backend user with access to the page.
Furthermore you can set the size of the input box, e.g. if a tiny input field, a huge textarea or a field fitting to the amount of lines of code should be shown.
Since a code module can be mis-used by black hat users to place malicious code on a page, this module is not installed by default, but can be downloaded from the WBCE-AOR.