A controlled loop is defined as a loop that continues to execute based on a specific condition, such as user input, while a count-controlled loop is a type of controlled loop that runs a predetermined number of times. An example of a controlled loop is one that continues until a user responds with 'Y' or 'y', demonstrating that the number of iterations is not fixed. In contrast, a count-controlled loop, such as one that iterates five times, clearly defines the number of iterations before execution begins. The distinction between these types of loops is essential for understanding how to manage loop execution in programming.