What C1V1 = C2V2 means
C1 is the stock concentration, V1 is the stock volume, C2 is the desired final concentration, and V2 is the total final volume. The amount of solute stays constant while diluent increases the total volume and lowers concentration.
The equation assumes the concentration definitions are compatible and volumes are additive. It does not account for chemical reactions, density changes, dissociation, product purity, or active-ingredient differences.