Yes, that's right. In addition, there are "planes" - kind of like set backdrops - that can add depth to the scene. (That's why it's the multiplane cyclorama.) For example, the serenity series featured a texture with a rainbow sky for the cyclorama and clouds for the planes. Together, it looks like a rainbow showing through the clouds.

Here's a simple render I did of the P4 horse on the Cyclorama. It's wearing EdW's tack.