Like the PRE tag, the CODE tag shows text in a monospace font. However, it doesn't add line break before and after the text. The example below shows a comparison between the two methods, and the code of this example

The <code>CODE</code> tag shown here is in monospace font.
If the <code>PRE</code> tag was used instaed, the text would look like this
The <pre>CODE</pre> tag shown here is in monospace font.

Example

The CODE tag shown here is in monospace font.
If the PRE tag was used instaed, the text would look like this
The

CODE

tag shown here is in monospace font.

In short, if you want to show a block of text, use the PRE tag, if you need to emphasize a term in the same sentence, use the CODE tag

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