The Settings section applies to all of the tabs.
"Give priority to deny" will check to see if the user has any deny permissions for any of the tabs. If so, that user will be unable to see the tab(s) where the permission given is "Deny." This will be true even if the user is in another group that has permission to see the tab, or even if the user is given explicit permission to view the tab. The "Deny" permission will always take precedence.
You can also choose to show the tabs as Tabs or as Groups. Tabs will display like this:
Groups will display like this: