Let $G$ be a topological group of totally disconnected (td) type, meaning every neighborhood of $1_G$ contains a compact open subgroup. Let $H$ be a closed subgroup of $G$. Then $H$ is also of td type.
Let $(\sigma,W)$ be a smooth representation of $H$. So $W$ is a complex vector space, $\sigma: H \rightarrow \textrm{GL}(W)$ is an abstract representation of $H$, and the stabilizer in $H$ of any vector is an open subgroup. Equivalently, every vector is stabilized by an open compact subgroup of $H$.
Let $\textrm{Ind}_H^G(\sigma)$ be the complex vector space of functions $f: G \rightarrow W$ with the following properties:
1 . There is an open compact subgroup $K$ of $G$ (depending on $f$) such that $f$ is right $K$-invariant ($f(gk) = f(g)$ for all $g \in G, k \in K$).
2 . For all $h \in H$ and $g \in G$, $f(hg) = \sigma(h)f(g)$.
Let $\textrm{c-Ind}_H^G(\sigma)$ be the subrepresentation of $\textrm{Ind}_H^G(\sigma)$ of functions $f$ satisfying the addition property:
3 . $f$ is compactly supported modulo $H$. This means that there is a compact set $Z$ (depending on $f$) such that $\{ x \in G : f(x) \neq 0 \}$ is contained in the product set $H.Z$. Equivalently, we can take closures and say that the support of $f$ is contained in $H.Z$. This is because $H.Z$ is closed, see e.g. here.
I have seen people interchange this definition with saying that the image of the support of $f$ is $H \backslash G$ is compact. But looking at the comments of this question, I am a bit confused on what is and isn't true. Compactly supported modulo a subgroup doesn't appear to always coincide with having the image in the coset space compact. Can someone clarify what, if anything, the condition (3) is equivalent to?