The name British Overseas Territory was introduced by the British Overseas Territories Act 2002, and replaced the name British-Dependent Territory, which was introduced by the British Nationality Act 1981. Before that, the territories were known as colonies or Crown colonies. The British Overseas Territories are also referred to as overseas territories of the United Kingdom, UK overseas territories, or, when the context is clear, simply the Overseas Territories.

The territories of Jersey, Guernsey, and the Isle of Man, though also under the sovereignty of the British Crown, have a slightly different constitutional relationship with the United Kingdom, and are consequently classed as Crown dependencies rather than Overseas Territories. British overseas territories and dependencies are distinct from the Commonwealth of Nations, a voluntary association of countries with historic links to the British Empire, as well as Mozambique.