Terminology for referring to a normally open switch vs the normally closed setting it is used in
Yes. The so called 'environment' and its conditions are accounted for by the design engineer or technician. This person dictates what the default state is for all switch's and relays based on the devices they are driving, especially in a room where mistakes could be fatal. Generally this means what is 'normal' is the safest state possible until humans or computers or firmware takes control. A contactor to discharge a capacitor bank would be in an 'off' state until needed, but may be in an 'on' state until software takes control after booting up. Part of a POST sequence for ATE would be to check the status of switch's, relay's, power supplies and heaters/coolers before allowing main power to come on in a room that simulate lightning, as an example. Terms like 'Normally open' (NO) and 'Normally closed' (NC) become too abstract in a room filled with them. If you want the details you look at the schematics posted on a wall in the room. If the door to the room was opened, the power to the room would be cut off and any stored high-voltage would be dumped into a bleed resistor. I was in charge of such a room and developed the software (LabView) and did much of the wiring, then testing, usually at 20,000 amps and about 30,000 volts. All things considered the 'Standard Way' is always about safety, starting with the default settings of the hardware before it was under software control.