Do graduate schools care if letters are confidential or not? In general, graduate programs prefer confidential letters. Admissions officials say that it displays more confidence on the part of the applicant if letters are "confidential" (meaning you, the applicant cannot see the letter). The Letter Service is required to indicate on the letter if it is confidential or non-confidential.
You are required to have three letters of recommendation submitted on your behalf. The letters should be submitted by instructors in a discipline related to your proposed field of study who are in a position to analyze your abilities and academic promise. Letters may be submitted online or on paper via regular mail; online submissions are strongly preferred.