The colossal squid is the largest member of its family Cranchiidae, the cockatoo or glass squids, with its second largest member being Megalocranchia fisheri. It is sometimes called the Antarctic cranch squid or giant squid and is believed to be the largest squid species in terms of mass. It is the only recognized member of the genus Mesonychoteuthis and is known from only a small number of specimens. The species is confirmed to reach a mass of at least 495 kilograms (1,091 lb), though the largest specimens—known only from beaks found in sperm whale stomachs—may perhaps weigh as much as 600–700 kilograms (1,300–1,500 lb), making it the largest known invertebrate. Maximum total length has been estimated between 10 metres (33 ft) and 14 metres (46 ft) but the former estimate is more likely. The colossal squid has the largest eyes of any known creature ever to exist, with an estimated diameter of 27–30 cm (11–12 in) to 40 cm (16 in) for the largest collected specimen.

The family Cranchiidae comprises the approximately 60 species of glass squid, also known as cockatoo squid, cranchiid, cranch squid, or bathyscaphoid squid. Cranchiid squid occur in surface and midwater depths of open oceans around the world. They range in mantle length from 10 cm (3.9 in) to over 3 m (9.8 ft), in the case of the colossal squid. The common name, glass squid, derives from the transparent nature of most species. Cranchiid squid spend much of their lives in partially sunlit shallow waters, where their transparency provides camouflage. They are characterised by a swollen body and short arms, which bear two rows of suckers or hooks. The third arm pair is often enlarged. Many species are bioluminescent organisms and possess light organs on the undersides of their eyes, used to cancel their shadows. Eye morphology varies widely, ranging from large and circular to telescopic and stalked. A large, fluid-filled chamber containing ammonia solution is used to aid buoyancy. This buoyancy system is unique to the family and is the source of their common name "bathyscaphoid squid", after their resemblance to a bathyscaphe. Often the only organ that is visible through the transparent tissues is a cigar-shaped digestive gland, which is the cephalopod equivalent of a mammalian liver. This is usually held in a vertical position to reduce its silhouette and a light organ is sometimes present on the lower tip to further minimise its appearance in the water.