Located in the City and County of Denver, Colorado, the Capitol Hill neighborhood is bounded by Broadway, Downing Street, Colfax Avenue, and Seventh Avenue, which carry large volumes of traffic around the neighborhood. It is technically located in East Denver which begins immediately east of Broadway, the neighborhood's western boundary. Many consider the Cheesman Park  neighborhood to be a part of the Capitol Hill neighborhood, but as defined by the city, Cheesman Park is a separate neighborhood. Denver also recognizes a statistical neighborhood called North Capitol Hill, but this is called Uptown by many residents. Colfax Avenue is the border between these two neighborhoods.

Capitol Hill is Denver's most densely populated neighborhood. It was once the home of Denver's elite and origination of Foursquare architecture in Denver. Today it consists of historic mansions, apartments and condo buildings. Because of the concentration of multi-family uses and the urban character of the neighborhood, parking is at a premium. The area is strongly influenced by the Colorado State Capitol and Downtown Denver which is adjacent to the northwest boundary of the neighborhood. Commercial uses are typically located on major arterials such as Colfax Avenue, East 8th Avenue, East 14th Avenue, East 13th Avenue, Lincoln Street and Broadway. A considerable number of mansion properties have been converted to office uses over the past several years due to zoning exemptions offered to historic structures which are zoned for residential uses. Office development in the neighborhood is primarily concentrated in the northwest portion of the neighborhood with small professional offices located throughout the neighborhood.

The Capitol Hill neighborhood is influenced by its proximity to the Colorado State Capitol, Downtown and its northern boundary, East Colfax Avenue.

Capitol Hill is one of the most cosmopolitan neighborhoods in Denver, well known as a haven for artists and bohemians. There are numerous restaurants, clubs, bars, stores, concert venues, and other cultural amenities in the community. East 13th Avenue is the center of Denver's punk community with various stores that cater to punks and hipsters. Colfax Avenue has a reputation for a wild nightlife with multiple concert venues (The Fillmore Auditorium, The Ogden Theater, The Bluebird Theater, 1Up Colfax), and numerous late-night bars, coffeeshops, restaurants, and stores on the street. During the day, lobbyists and politicians from the Colorado State Capitol can be seen making deals in the restaurants and bars of the neighborhood. The neighborhood also has a reputation for being a very gay and lesbian friendly area of Denver.

Capitol Hill is next to two major Denver parks, Civic Center Park and Cheesman Park. Both of these are meeting centers for the community; they host many festivals, including the Capitol Hill United Neighborhoods-sponsored People's Fair in early June.

Capitol Hill has had a long bohemian reputation with the Colburn Hotel on Grant Street being a onetime residence of Jack Kerouac and Allen Ginsberg.