Use the handle on the side of the fireplace to open your damper before you light the fire. The open damper allows the smoke to rise up the chimney and keeps smoke and toxic gasses out of your home. When the fire is burning, you can adjust the damper to allow less airflow and create a smaller fire. Newer prefab fireplaces often have dampers that allow open or close options only.
Chimney top dampers sit on the top of the chimney and are opened and closed with a metal cable. They provide an effective seal but are more expensive and should be installed by a professional.
Most dampers sit at the base of the chimney. Throat dampers are inflatable seals that are installed near the existing damper and plug the chimney when you're not using the fireplace. They are inexpensive and easy to install, but they don't stop rain or debris from entering your chimney.
Check your damper annually as part of your regular fireplace maintenance. If the damper is warped or not sealing tightly, replace it.