The affirmation “outside the Church there is no salvation” is explained in the Catechism of the Catholic Church as follows:
How are we to understand this affirmation, often repeated by the Church Fathers? Re-formulated positively, it means that all salvation comes from Christ the Head through the Church which is his Body: Basing itself on Scripture and Tradition, the Council teaches that the Church, a pilgrim now on earth, is necessary for salvation: the one Christ is the mediator and the way of salvation; he is present to us in his Body which is the Church. He himself explicitly asserted the necessity of faith and baptism, and thereby affirmed at the same time the necessity of the Church which men enter through baptism as through a door. Hence they could not be saved who, knowing that the Catholic Church was founded as necessary by God through Christ, would refuse either to enter it or to remain in it.
This affirmation is not aimed at those who, through no fault of their own, do not know Christ and his Church: Those who, through no fault of their own, do not know the Gospel of Christ or his Church, but who nevertheless seek God with a sincere heart, and, moved by grace, try in their actions to do his will as they know it through the dictates of their conscience—those too may achieve eternal salvation.
Although in ways known to himself God can lead those who, through no fault of their own, are ignorant of the Gospel, to that faith without which it is impossible to please him, the Church still has the obligation and also the sacred right to evangelize all men. (CCC 846-848)
Specifically concerning non-Catholic Christians, the Catechism notes:
The Church knows that she is joined in many ways to the baptized who are honored by the name of Christian, but do not profess the Catholic faith in its entirety or have not preserved unity or communion under the successor of Peter. Those who believe in Christ and have been properly baptized are put in a certain, although imperfect, communion with the Catholic Church. With the Orthodox churches, this communion is so profound that it lacks little to attain the fullness that would permit a common celebration of the Lord’s Eucharist. (CCC 838)