A coffered ceiling is a type of tray ceiling. It is made up of a series of recessed panels that are framed by molding. This type of ceiling is often used in formal settings, like dining rooms and libraries, to add sophistication and elegance. It can be made out of variety of materials, including drywall, sheetrock, plaster, plywood and even wood. Coffered ceilings are a great way to add some architectural interest to a room. They can also be used to hide unsightly wires and cables.