Continuity
applies to both curves and surfaces. It simply
refers to how two curves meet at a point, or how
surfaces meet at an edge. When using a patch-modeling
approach, where a character, vehicle or whatever
are modeled from a series of patches, like a quilt,
one wants to avoid visible seams between the individual
patches.

Above
we have 3 sets of 2 curves which are on colored
layers. The top two yellow curves do not have any
continuity at all. The middle two pink curves have
positional continuity, meaning that their end points
are exactly on top of each other. This will result
in a hard edge between surfaces, which is sometimes
desired. The bottom two blue curves have both positional
and tangential continuity. To verify this one must
look at the 'hulls'. Notice that the hulls create
a straight line as we transition from one curve
to the other. With 3rd degree curves/surfaces,
we look one vertex in from the end/edge on each
side of the connection point.

Above
we have two surfaces meeting at an edge. To maintain
both positional and tangential continuity while
deformed, the surfaces have matching parameterization/spans
along the edge where they meet. Also, the hulls
show us that straight lines are visible as we transition
from one surface to the other. This is important
to avoid breaks at the seam. While all deformers
can break seams even when they are modeled as described,
the 'stitch' tools can fix the breaks if the surfaces
are modeled in this fashion.

So
what we are looking at above is how one can modify
the edge where two surfaces meet without breaking
their continuity. If one selects a minimum of four
vertices between the two surfaces, specifically
the two points where they touch, and one vertex
in from the edge on each surface, as long as we
move/rotate/scale those 4 points as a unit, the
edge will not lose its continuity. Therefore, if
these points were in a cluster, for example, they
must all have the same weight value to avoid breaks
in continuity.