The capo is a device which is placed across the neck of the Ukulele (acting as a moveable nut). It has 2 uses:
Capos come in various shapes and sizes.
E.g.1. If a song is in a key which is within your singing range, but involves playing difficult chord shapes, e.g. in the key of E flat (Eb), a capo may be used. The capo allows you to play the song in the same key, yet at the same time use easier chord shapes. Consider a Turnaround in E flat (Eb):
If you place the capo on the third fret, the following easier chord shapes can be played without changing the song’s key.
If you have learned some bar chords, you will notice that the capo is acting as a bar. To work out which fret the capo must be placed on, simply count the number of semitones between the "capo key" you have selected to change to (eg: C, as used in the above example) and the original key (i.e. Eb as above). Hence C to Eb = 3 semitones, and therefore the capo must be placed on the third fret.
Eg: 2. If the song is in a key that already has easy chord shapes but is out of range to sing, you can change the key by placing the capo on a particular fret and still use the easy chord shapes. Eg: if you start with the above Turnaround in the key of C but wish to change it to the key of Eb, place the capo at the third fret and play the same C Am F G chord shapes. When you play these chord shapes with the capo at the third fret they become Eb Cm Ab Bb.