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Prior work has often taken a techno-centric approach, focusing on new computational techniques to support transparency. In contrast, this article employs empirical methods to better understand user reactions to transparent systems to motivate user-centric designs for transparent systems. We assess user reactions to transparency feedback in four studies of an emotional analytics system. In Study 1, users anticipated that a transparent system would perform better but unexpectedly retracted this evaluation after experience with the system. Study 2 offers an explanation for this paradox by showing that the benefits of transparency are context dependent. On the one hand, transparency can help users form a model of the underlying algorithm's operation. On the other hand, positive accuracy perceptions may be undermined when transparency reveals algorithmic errors. Study 3 explored real-time reactions to transparency. Results confirmed Study 2, in showing that users are both more likely to consult transparency information and to experience greater system insights when formulating a model of system operation. Study 4 used qualitative methods to explore real-time user reactions to motivate transparency design principles. Results again suggest that users may benefit from initially simplified feedback that hides potential system errors and assists users in building working heuristics about system operation. 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