This drop-down list lets you choose from a series of pre-created settings. Choosing a particular name will automatically configure the Format and Attribute options in a particular way.
You can additionally create new settings and remove existing settings. To make a new setting, make a custom selection from the Format and Attribute options, then click on the "Save As..." button. To remove an existing setting, simply select its name and click on the "Remove" button.
This setting lets you choose the desired type of wave encoding you want for your files.
This setting lets you choose the bit rate, sampling rate and number of channels for the wave encoding. Note that the list of options available is dependent on the particular type of encoding format chosen.