How to Use a Guitar Capo
Capo = Cap (head)
A guitar capo is a clamp that is used on the guitar to make the neck shorter. By placing a capo (head) on a particular fret, you create a 'new nut'; a new zero fret.
A capo can be used on the fretboard for any tuning. The really cool thing about them, is that your guitar has 'sweet spots'. When you place a capo, say, on the 3rd fret, & play in G, your guitar resonance might 'light up.' Listen for the sweet spots, while exploring different keys.
Make sure when you are placing a capo, that it is straight, & makes good contact with the fret (evenly). You can get 'buzzing' if the capo is not set well.
Triads are 3 tone chords. The qualities derived from a Major key center are I IV V Major; ii iii vi minor, and vii diminished.
A key is a tonal center - all other derived tones circle around key tone as the center. Our ear rests on this tone.

The DIATONIC chords (derived tones & chords within a key - across the tones of a key center) are the 'expected' chords when you are playing or writing a song in a particular key center.
Often within a song, nondiatonic tones & chords can be used for interest, tension, & voice leading.
When you place a guitar capo at a certain fret, & play the chords of a given key, you are actually playing in a new key.
Capo Chart for Sharp Keys

If your jamming with other people, & recognize the key they are playing in, you can reinforce - thicken it up - a song very well by using the capo up high, but fingering in a different key.
A capo isn't mandatory, since your fingers do a similar thing as a capo when you are fretting higher versions of chords. The capo does make things easier, and gets some great sounds & mileage for the chords you already use (ie. C, G, D, A, F, E).
Diatonic Triads in the Flat Keys
Chart for the keys when using a capo on frets 1 - 9 while fretting the flat keys

