Critical altitude, or full throttle height, is the highest altitude where the engine's supercharger can produce the maximum boost, while the engine is still able to use that boost, on a specific power setting (in US parlance, that might be military power, or, maybe, war emergency power, if it is allowed for the specific engine). Eg. for the early F series V-1710, single stage, the critical altitude for military rating/setting was some 12000 ft. That is for the engine at the test stand, ie. the air is not forced into the intake prior entering the supercharger.
The plane flying straight level will usually force, or ram the air into the supercharger (= ram effect), thereby 'elevating' the engine's critical altitude. In that case, the engine's critical altitude for, say, P-40E (having the V-1710 engine mentioned, military rating) will be maybe 14000 ft - a 2000 ft gain. The faster the plane goes, the higher the crit.alt. P-51Bs were able to add 4000-5000 ft to the engine's no-ram critical altitudes, while the P-39 and P-63 were lousy in that 'discipline', despite the decent speeds.