When viewing a record in the Records Window, you can expand any linked record to view the linked record as if it were part of the first record. For example, to see an Individuals spouse and children, you can expand the Spouse Family link. When you do this, you are actually viewing a Family record which stores links to all the Individual records for the members of the family.
If you are viewing a person's spouse family record, as a linked record, do you wish to see them listed as a spouse in the Family record that is then displayed? If you are viewing a person's parents' family record as a linked record, do you wish to see them listed as a child?
The same issues apply when viewing an Individual record, as a linked record, from the point-of-view of a Family record.
If you want a strictly accurate viewing of the linked record, you should uncheck all options. Most users prefer the installation default settings which are: