Cosmology and Geometry (4)

The balloon analogy in two dimensions illustrates simply the idea of comoving coordinates. If instead of viewing the expansion of the balloon from the outside I place myself on one of the dots on the balloon's surface, I appear to be stationary and I see the other dots moving away from me (and in my immediate area I see the apparent curvature of the balloon's surface decreasing). Astronomers will also often speak (in three-dimensional space) of a comoving volume. This means a volume of space that is moving uniformly with the expansion.
Illustration in Two Dimensions
The above right animation illustrates the difference between viewing the surface of a balloon from outside or from comoving coordinates on its surface (Ref). Here are some still frames from this animation that will help clarify what you are watching:

Comoving coordinates in the real Universe correspond to extending this idea to three spatial dimensions.