An image processing apparatus obtains a first image, cuts out at least a portion of the first image to generate a second image that is distortion-corrected, receives designation of a first area in which image quality is to be different in the first image, calculates a second area in the second image, the second area corresponding to the first area designated in the first image, and sets, as an area associated with a function that influences encoding processing for encoding the second image, an area that includes the second area and is based on a processing unit of the encoding processing for encoding the second image, the processing unit being an area in the second image.