As a quick overview:
Burned-in subtitles are always displayed and cannot be selected by the player.
All other subtitles are included as a separate stream in the video container and can be selected and activated by the player.
If they are marked with a forced flag, they are automatically displayed by the player.
However, this does not work with many TV players.
A special case are the so-called closed captions, which are only used in America. These are displayed automatically and are encoded in the video stream.