Horses are prey animals with a strong fight-or-flight response. Their first reaction to threat is to startle and usually flee, although they will stand their ground and defend themselves when flight is impossible or if their young are threatened. They also tend to be curious; when startled, they will often hesitate an instant to ascertain the cause of their fright, and may not always flee from something that they perceive as non-threatening. Most light horse riding breeds were developed for speed, agility, alertness and endurance; natural qualities that extend from their wild ancestors. However, through selective breeding, some breeds of horses are quite docile, particularly certain draft horses.

Studies have indicated that horses perform a number of cognitive tasks on a daily basis, meeting mental challenges that include food procurement and identification of individuals within a social system. They also have good spatial discrimination abilities. Studies have assessed equine intelligence in areas such as problem solving, speed of learning, and memory. Horses excel at simple learning, but also are able to use more advanced cognitive abilities that involve categorization and concept learning. They can learn using habituation, desensitization, classical conditioning, and operant conditioning, and positive and negative reinforcement. One study has indicated that horses can differentiate between "more or less" if the quantity involved is less than four.

Horses are mammals, and as such are warm-blooded, or endothermic creatures, as opposed to cold-blooded, or poikilothermic animals. However, these words have developed a separate meaning in the context of equine terminology, used to describe temperament, not body temperature. For example, the "hot-bloods", such as many race horses, exhibit more sensitivity and energy, while the "cold-bloods", such as most draft breeds, are quieter and calmer. Sometimes "hot-bloods" are classified as "light horses" or "riding horses", with the "cold-bloods" classified as "draft horses" or "work horses".