Travelcard zones and DLR

A Zone 1-2 travel card is valid between any stations in those Zones - if a station is also in another zone as well this is irrelevant.

The Jubilee and DLR stations are not co located at Canary Wharf so you will need to walk between them - and Heron Quays DLR is actually a bit nearer. Leaving the Jubilee Line requires going through a gate line.

so yes, you need to leave the tube with a touch out and join the DLR with a touch in, and leave with a touch out.

The DLR doesn't use the same type of gates so you will need to look for the touch pad. The pink ones are special and not generally what you are looking for,

Awesome. Thanks for the replies. I did some poking around on YouTube so I understand what you mean about the DLR not having the traditional gates. This is good to know; now I know what to look for.

I see that in my above example I would have no choice but to touch out and touch in again to transfer from DLR to the Jubilee line. However, in general, is it recommended to touch out of one service and into another? e.g.: Underground to Overground or Underground to Rail, etc. Do they generally have the different services sectioned in such a way that it's obvious where you should touch out?

Usually it's pretty clear. The DLR is the only major service that is ungated and you're expected to remember to touch in or out.

The pink sensors are important if you are using the London Overground to avoid central London - you need to touch them to prove to the system that you avoided Zone 1 instead of travelling into it and out again.

Just want to add that we did this trip the other day and we were confused about which DLR stop and we got off one too early, not a huge deal as we just walked to a different tube stop. Anyway, we were not paying attention and didn’t tap out after our DLR ride...we remembered when we tapped in at the Jubilee tube stop...I’m still not sure what that means for our oysters but I agree it’s not as clear with the DLR about tapping out. We totally missed the place to do it. But all in all, the Oyster cards are fantastic!

If you fail to tap out, either on the DLR, tube or any train, you get charged the maximum fare. They assume you exited London by train.
When you tap in, your card gets deducted the maximum fare, the fare to the outer boundary of London. When you tap out you get refunded that fare and charged the actual amount.
They also allow you to go "overdrawn" on an Oyster Card. When you enter you must have a postive balance, but it may not be enough for a longer trip. They still let you in, you may not be going that far. If you then do go a long way, you end up with a negative balance.

There is a certain amount of auto correction and completion done by the system overnight looking at incomplete journeys, and Out of Station Interchanges. However, this cannot resolve everything, leaving maximum fare charges, which also affect the expected capping.

DLR Oyster readers are often attached to walls - the earliest bits of the DLR predate Oyster.