This document discusses parameters in C++. There are two types of parameters: formal parameters defined in a function and actual parameters passed during a function call. C++ supports two ways of passing parameters: call by value where the formal parameter is a copy of the actual value, and call by reference where the formal parameter is an alias to the actual parameter. Call by reference allows a function to modify the original value. While it is more efficient for large data types, it can be ambiguous whether a parameter is intended for input or output.