There are 2 travel Zones for Madrid tourist travel pass
Zone A covers underground services within Madrid city, city bus lines (except Airport Express shuttle), Renfe commuter trains zone 0 and A, and Metro light rail train ML1. There aren´t any attractions outside of the metro area Zone A, except for the Zoo or a water park.
You will find this tourist map of Madrid useful.
Zone T comprises all all of Zone A and includes services to Guadalajara and Toledo, all Renfe commuter trains, Metro light rail train ML1, ML2 and ML3, and the Parla tramway. I do not recommend Zone T card at all. For instance, you cannot travel to Toledo on the Renfe AVE as only Cercanias train are covered by Zone T card. You have to go to Toledo by bus if you want to use Zone-T card.