Although carbon monoxide (CO) has been known to bind to the ferrous heme in cytochrome P450 enzymes (P450s) since the earliest days of P450 research, details on the nature of the ferrous-CO bonding remain elusive. This study employed dispersion-corrected density functional theory (DFT) calculations and DFT-based theoretical analyses to investigate the complexes between CO and a thiolate- or imidazole-ligated heme that contains ferric or ferrous iron. Traditionally, the ferrous-CO bonding in heme systems has been interpreted qualitatively in terms of σ donation and π backdonation. Complementary occupied-virtual orbital pair (COVP) analysis yielded one orbital pair for σ donation and two for π backdonation together with the specific magnitude of their energetic contributions. The charge-transfer effect for these three orbital pairs has nearly the same energetic significance in the ferrous-CO complexes. Therefore, in total, the π-backdonation effect is much greater than the σ-donation effect. In contrast, the σ-donation effect is more significant in the ferric-CO complex because of the less efficient π backdonation. The nature of ferric-CO and ferrous-CO bonding was further scrutinized using the generalized Kohn-Sham energy decomposition analysis (GKS-EDA) scheme, whose results highlighted the significance of various effects in enhancing the Fe-CO bonding for the thiolate- and imidazole-ligated heme groups. In particular, the intrinsic repulsion effect plays a crucial role in promoting the preferential binding of CO toward the ferrous heme and in determining the geometry of the complexes.