This chapter is named “A Parable” because it contains a well-known story called, “The Burning House and the Three Carts” or “The Burning House of the Triple World.” The Lotus Sutra contains seven parables, commonly called the Seven Great Parables, and this is the first of them.
The first half of the Lotus Sutra (“Shakumon” or the “Theoretical Section”) is characterized by three stages of preaching. That is, the same subject is presented in three different ways according to the capacities of the hearers: first by a theory, then by a parable, and finally by means of a story from some previous existence. The teaching of the One Vehicle, for instance, is first presented theoretically in Chapter Two. Then it is illustrated by parables in Chapters Three, Four, Five, and Six. Finally its reason and purpose is clarified in Chapter Seven by a story from a previous existence.
Introduction to the Lotus Sutra