QTP supports 3 types of recording modes
1. Normal mode also called Contextual
2. Low-level recording mode
Normal Mode: It is the default recording mode and takes full advantage of QTP's Test Object Model. It recognizes objects regardless of their position on -screen. This is the preferred mode of recoding and is used for most of the automation activities.
Low-level recording mode: This mode records the exact x,y co-ordinates of your mouse operations. It is helpful in testing hashmaps. It is useful for recording objects not identified by normal mode of QTP.
Analog mode: This mode records exact mouse and keyboard "movements" you perform in relation to the screen / application window. This mode is useful for the operation such as drawing a picture, recording signature., drag and drop operations.
Learn more about Recording Modes in QTP