The capitalisation options can be found on the text toolbar.
All caps allows you to set a text style where the case is set to either:
|As Typed||The case will remain to whatever you have typed|
|ALL CAPS||Text will always appear as uppercase, no matter what case you type in|
|all lower||Similar to the above, however text will always appear as lowercase|
|Initial Caps||The first letter of each word is capitalised|
|Small Caps||Characters that were typed as lowercase will appears as slightly smaller upper case character. For example see below|
Many OpenType fonts actually include special character glyphs for Small Caps and if the font you are using does, Designer 16 will use them, so you will see Small Caps text appear exactly as the font designer intended. If the font you are using does not provide its own Small Caps character glyphs, Designer will use the font's ordinary upper case characters, but at a reduced size. Therefore you can safely use this option with any font, whether or not the font has Small Caps support.
Xara keeps the underlying case, so even if you change the case to ALL CAPS for example, you can change it back to As Typed and it will appear as you originally typed out your words.
This option will simply toggle the case of each character, lowercase will appear as uppercase and uppercase as lowercase.