Managed Code is what Visual Basic .NET and C# compilers create. It compiles to Intermediate Language (IL), not to machine code that could run directly on your computer. The IL is kept in a file called an assembly, along with metadata that describes the classes, methods, and attributes (such as security requirements) of the code you've created. This assembly is the one-stop-shopping unit of deployment in the .NET world. You copy it to another server to deploy the assembly there—and often that copying is the only step required in the deployment.Managed code runs in the Common Language Run time. The runtime offers a wide variety of services to your running code. In the usual course of events, it first loads and verifies the assembly to make sure the IL is okay. Then, just in time, as methods are called, the runtime arranges for them to be compiled to machine code suitable for the machine the assembly is running on, and caches this machine code to be used the next time the method is called. (This is called Just In Time, or JIT compiling, or often just Jitting.)
Unmanaged code compiled directly to machine code that ran on the machine where you compiled it—and on other machines as long as they had the same chip, or nearly the same. It didn't get services such as security or memory management from an invisible runtime; it got them from the operating system. And importantly, it got them from the operating system explicitly, by asking for them, usually by calling an API provided in the Windows SDK. More recent unmanaged applications got operating system services through COM calls.
Unlike the other Microsoft languages in Visual Studio, Visual C++ can create unmanaged applications. When you create a project and select an application type whose name starts with MFC, ATL, or Win32, you're creating an unmanaged application.