Normally Closed output has the inverted effect, meaning there will be continuity between connection points while the output is inactive, and once the output is active it will be no continuity between the connection points. The NO output (Normally Open) means the initial state of the output position before activation, in this case there will be no continuity between connection points while the output is not activated once the output is energized, there will be continuity between both connection points. These outputs are located in the back of your DVR, and can be NO (Normally Open), or NC (Normally Closed). The DVR is commonly used or mostly used as a recording device for Video surveillance, some DVRs have Audio Inputs (almost everyone now days), but your unit also may come with extra outputs to execute actions like turn lights on, unlatch doors, open the garage of your house, etc.
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