Right-click Tool - Show> Show Modes/Options ??

Can I ask what this actually shows/hides? I've been playing around trying to work out if having this on or off makes any difference and so far I can't find anything it actually does.
So, if it does something does its name need to be changed to make it clearer what it actually does (can't find anything in the user manual either)? Or, should it be removed as all the mode icons show regardless if it is selected or not ...
So, if it does something does its name need to be changed to make it clearer what it actually does (can't find anything in the user manual either)? Or, should it be removed as all the mode icons show regardless if it is selected or not ...