A first set of divertor gas baffles has recently been installed in the TCV tokamak. In order to explore the physics determining the benefits and limitations of divertor baffling and to guide the design of a possible second generation of baffles, the effect of baffle closure is investigated using the 2D transport code SolEdge2D-EIRENE with realistic wall geometries. The baffle extension is scanned, first imposing the same upstream conditions as in previous SOLPS-ITER studies, then extending the parameter space to access detached plasma conditions. In attached plasma cases, divertor neutral compression is maximised by a Low-Field Side baffle length with an opening between the separatrix and the baffle tip of approximately 5 lambda(q), resulting in an increase in neutral compression by a factor 4 with respect to the unbaffled case. In detached cases this ratio can be improved by up to a factor 25 using higher baffle closures. This difference in behaviour between attached and detached conditions is explained by a model based on the ionisation mean free path of neutral particles recycled from the target. In some conditions, the optimal baffle extension in terms of neutral compression is found to be subject to high levels of intercepted upstream heat flux, which results in a peak heat flux on the baffles comparable to the one impinging on the outer target. The individual roles of the High-Field Side and Low-Field Side baffles are disentangled by means of dedicated simulations, which show a lower global impact of the inner baffle. This study suggests that an outer baffle with a gap of approximately 3 lambda(q), slightly more closed than the one presently installed, could further enhance the neutral compression ratio in cases where the ionisation front is detached. The biggest unknown in these simulations is related to far SOL particle transport, which could result in higher levels of baffle recycling and thus limit baffle performance.