Confined open water means :
"2. Confined Water Dives
This is what it’s all about – diving. You'll develop basic scuba skills in a pool or in confined water – a body of water with pool-like conditions, such as off a calm beach. "
this is from the PADI website
Here is how it is explained to instructors in the manual:
Confined open water is an open water site that offers swimmingpool-like conditions with respect to clarity, calmness, and depth.
It has both shallow water and water sufficiently deep to allow student divers to meet all skill performance requirements.