I always like to tell my students that this category is where the instructor begins to transition from a person that was super hands-on to an observer. Yes, some students still need some help with stopping spins at this point, but most are quite able to take care of themselves.
At Skydive Palatka we note in their logbook if the Category C1 jump went well enough to allow the student to begin freefall turns in C2. Some students will benefit from repeating the C1 jump with only one instructor so that they can focus on holding a heading and relaxing. Other students have shown the ability to hold a heading during the C1 jump and benefit from beginning their freefall turns (typically a few 90 degree turns).
We also begin to really emphasize that landing patterns are flexible so that the student can begin practicing modifying their patterns for landing accuracy. Most students are put on radio advisory at this point; we will still notify them if the winds have significantly changed, if they are getting too close to another jumper, or if they are going to seriously hurt themselves.