During the operation of the compressed air energy storage (CAES) system, a discrepancy exists between the air storage pressure and the turbine inlet pressure. At the same time, to ensure that the turbine operates efficiently when the system load varies, the turbine needs to be regulated reasonably. In this paper, the influence of three nozzle governing (NG) parameters on turbine performance during the NG process is investigated: the inlet pressure of the NG region, the area of the NG region, and the base pressure. The flow characteristics and loss mechanisms under partial admission conditions and NG conditions are also analyzed. Furthermore, the NG process is optimized by using a transition section. The results show that the loss under the NG condition with low inlet pressure at the NG region is similar to the partial admission loss, both of which are mainly affected by the area of the NG region. In both working conditions, vortex structures appear at the stator outlet of the NG region. At the same time, the mixing of different airflows and the flow separation phenomenon within the rotor leads to a significant increase in entropy production rate. The transition section can attenuate the leakage and reduce the entropy production rate in the radial gap between the stator and rotor, increasing turbine efficiency by up to 1.1 % at maximum when using the transition section.