The HTML Envelope is essentially where the content gets displayed inside the webpart. For instance if you're container looked like this:
<div class="mycontainer">
<h2 class="myheader">Header Text Here</h2>
</div>
Then inside the container immediatelly after the closing h2 tag would start the HTML Envelope and would end right before the closing div tag.
Try placing some header text in the Web part container >Container Title box and then put some text inside the HTML Envelope content before and content after and see where they render. This will give you a better idea of when you might use one over the other (usually styling reasons)