From the Super Mario Wiki, the Mario encyclopedia
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The Cap Jump is a move that debuts in Super Mario Odyssey. It allows Mario to jump to greater heights and reach high ledges and platforms, though the vertical height granted isn't as high as a Triple Jump or a Ground Pound Jump. To perform it, the player must throw Cappy and hold the button, then have Mario walk into Cappy; Mario will automatically jump on top of him and gain a boost in height.
The Cap Jump can also be used to perform an advanced technique known as the Cap Dive. This can allow Mario to travel across large distances in midair. In order to perform it, the player must jump, throw Cappy, and quickly dive into Cappy while holding him in the air. Mario will then automatically jump onto Cappy and gain height. This can be followed up by another normal dive in midair, though Mario will not jump onto Cappy multiple consecutive times. This technique is required in order to reach certain secret Coin Stacks and to win first place in certain Koopa Freerunning races.
The button sequence for the Cap Dive is as follows:
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