CAPE is an acronym for Convective Available Potential Energy, and is used as a metric when identifying the potential for convection (thunderstorm activity). It must be stressed that CAPE is the end all for determining severe weather risk, but is certainly important. Remember that air must have buoyancy (ability to rise) and then condense to form clouds, rain, hail, etc and CAPE provides a measure of this buoyancy. The higher this buoyancy, the quicker air will rise and begin the formation of thunderstorms. The CAPE value is measured in Joules per kilogram (J/Kg) and, generally, you need a minimum of 1,000j/kg of CAPE to see severe weather (Blanchard, 1998). CAPE can reach values of up to 5,000J/Kg, but that is reserved for rare events, such as large scale severe weather outbreaks. Here in the Mid Atlantic a good day is when CAPE gets to ~2,000J/Kg. There are two other types of CAPE talked about in forecast discussions and severe weather outlooks: MLCAPE (Mixed Layer CAPE) and SBCAPE (Surface-Based CAPE). Unfortunately I am not adept at explaining these two terms, but if you were to Google: SPC + MLCAPE or SPC + SBCAPE there are several good snippets of information. Hope this helps!
Reference:
Blanchard, D. O. (1998). Assessing the Vertical distribution of Convective Available Potential Energy. American Meteorological Society, 13, 870 - 877.: