Found this info and it matched what I knew already.
Anyways, BMW arranges each individual option and its corresponding coding configurations, with a three or four digit character, at the factory.
So, say your vehicle has the Comfort Access feature, it would be saved, as one file, per se, as "S322" under the factory's vehicle order or VO.
VO coding means using a much more intricate program, to dig into the computer mapping and add or remove said features (as the factory did), via its "Vehicle Order" instead of using something like the Bimmercode APP, where alternatively, you make individual changes, to add or remove features.
Say I want to "VO code" in Comfort Access to my vehicle, that didn't come with it originally.
Instead of going into Bimmercode's "Expert mode' and make individual coding changes, to add/remove this option, I could instead "VO code" file "S322" and it would add/remove all those required coding changes, in one fell swoop.
The problem with the VO coding method is if a BMW franchise dealer ever has to do a software update or a new part integration, which is required, to complete and bill some warranty covered repairs. Incidentally, their system does a checks of your original "Vehicle Order" against any or our hypothetically, self-added "S322" option and detects any potential discrepancies.
It's not even a "gotcha" but more of a fail-safe and integrity check. So, by design, it would generate an error, which is a dead giveaway that you messed with the original vehicle order and programming.
But VO coding does give you a ton more flexibility and intricate changes, over the APP, which is its whole advantage.
With something less invasive like the Bimmercode APP, you don't actually add a file, (or i.e. VO code), you merely making changes, to a file that already exists, in the original vehicle order, so it doesn't trigger a mapping mismatch.
I hope this wasn't too nerdy and explained it a bit.