When making this stitch, the needle and thread are brought out at the top of the line to be covered, and held down with the thumb on the material. The needle is then inserted into the exact spot where the thread first emerged and is brought out again a short distance below (according to the length of stitch required). The needle/thread is drawn through and over the loop of the working thread. The stitch is then repeated.
The chain stitch is also known as the tambour stitch or the point de chainette.
There are many variations on the theme of the chain stitch, including: double chain stitch, feathered chain stitch, open chain stitch and spiked chain stitch, as well as the detached chain stitch (lazy daisy stitch) and the reverse chain stitch (aka broad chain stitch).
Source: THOMAS, Mary (1934). Mary Thomas's Dictionary of Embroidery Stitches, London: Hodder and Stoughton, pp. 32-33.
GVE