While computer generated images of landscapes may be static, the term computer animation only applies to dynamic images that resemble a movie. However, in general the term computer animation refers to dynamic images that do not allow user interaction, and the term virtual world is used for the interactive animated environments.

Computer animation is essentially a digital successor to the art of stop motion animation of 3D models and frame-by-frame animation of 2D illustrations. Computer generated animations are more controllable than other more physically based processes, such as constructing miniatures for effects shots or hiring extras for crowd scenes, and because it allows the creation of images that would not be feasible using any other technology. It can also allow a single graphic artist to produce such content without the use of actors, expensive set pieces, or props.

To create the illusion of movement, an image is displayed on the computer screen and repeatedly replaced by a new image that is similar to the previous image, but advanced slightly in the time domain (usually at a rate of 24 or 30 frames/second). This technique is identical to how the illusion of movement is achieved with television and motion pictures.