A knitted therapeutic compression and cushion sock and a method for making such a sock include a terry-knit cushioning layer in selected bottom portions of the sock, allowing for greater ventilation and cooling in the top portion. The sock includes graduated zones of compressive pressures. Gradual changes in compressive pressures from one zone of compressive pressure to another can be provided by compression flaring, or changing the feed rate of elasticized yarn during knitting at or near the interface of two zones having different compressive pressures. Such a sock is useful for padding and compressing foot and leg areas to both prevent and treat vascular and skin conditions such as foot and leg ulcers.