Literacy as skills refers to the notion that reading and writing is a set of discrete skills that can be learned then applied in a variety of situations. The literacy–as–skills concept is the basis for a traditional schooling model of literacy education. Instruction is focused on skill–building activities that emphasize decoding and encoding, grammar structures, and paragraph development. "From this perspective, literacy is generally equated with decontextualized skills regarded as stable across texts and contexts" (p. 7).

Literacy can also be viewed as the ability to carry out and complete specific tasks, such as form–filling or addressing an envelope. In these kinds of activities, there is some sense of context due to the socially constructed nature of the tasks, but the same tasks are often used to assess literacy achievement for all people. For example, the tasks used in literacy achievement measures, such as the IALS, are purported to be familiar, yet there is no assurance that they are part of the cultural contexts of the individual. In a task-based approach to literacy, instruction would focus on the completion of literacy tasks that require similar levels of difficulty, but the context is generally disregarded. In other words, a student might learn to complete a job application in class but would not learn to complete the application under the conditions required by the employer. "Literacy as skills denies the role of meaning in literacy; literacy as tasks denies the role of social context" (Fingeret & Drennon, 1997, p. 62).

Literacy as practices emphasizes "our pluralistic culture and the many different social contexts in which literacy is used" (Lytle & Wolfe, p. 10). Literacy activities are integrally tied to the situation, people, and social practices of a particular setting or activity; it is shaped and reformed depending on the context in which it appears. For example, a literacy activity such as reading a note will be different at home, at school, and at work. The activity is shaped by the note writer and note reader; it is influenced by the meaning and content of the note; and it is affected by the people who may also be involved in the activity.