The Display/Behavior options effect how CHS provides information to you.
When you invoke hotkeys to do things like count the # of characters on the clipboard, the results can be shown to you in system tray or with a messagebox, etc.
When new clips are created, they are named automatically; here you can customize how they are named.
Checking "LiveSpell View" causes spell check to always underline spelling errors when browing the list of clips; if unchecked, spelling errors are only underlined when you are actively editing a clip.