4.3 Memory Management
4.3.5 Real versus Protected mode memory addressing
The concepts of real versus protected mode memory addressing come up frequently in discussions of memory space located above conventional memory. Conventional memory is the first 640 KB of memory.

Real Mode 
Real mode memory addressing means that software, such as DOS or its applications, can address only 1,024 KB (1 MB) of RAM. In other words, real mode means that the microprocessor chip addresses the first 1,024 bytes of "conventional and upper memory" by actually assigning real addresses to real locations in memory. A 286 system running in real mode, for example, acts essentially the same as the 8088/86 chips and can run older software with no modifications.

Protected Mode
The counterpart to real mode is protected mode memory addressing. Unlike real mode, protected mode allows one program to fail without bringing down the whole system. The theory behind protected mode is that what happens in one area of memory has no effect on other programs. In other words, when running in protected mode, a program is limited to its own memory space allocation, but it can access memory above 1MB. The 80286 could address up to 16 MB of memory, but software could use the chip to access even more memory. Note that before programs that run concurrently are truly safe from one another's actions, the microprocessor (along with other system chips) requires an operating system that can work to provide that protection. Just about every operating system other than DOS runs in protected mode.