There are two kinds of coconut oil, which are: - Refined coconut oil is processed through dry milling, which means that the coconuts were baked before extracting the oil. It's then bleached to kill dust, microbes, or insects. That means the oil has a mild flavor with some tropical aroma. - Unrefined coconut oil (virgin coconut oil) is less processed and comes from fresh, young coconuts through wet milling. It does not go through bleaching, making it have a bold flavor and more nutrients. However, it is more expensive and has a shorter lifespan.