It is possible to duplicate log events generated by the agent(s), operating on the managed machine, in the Application Event Log of Windows; or send the events to the specified SNMP managers. If you do not modify the event tracing options anywhere except for here, your settings will be effective for each local backup plan and each task created on the machine.
You can override the settings set here, exclusively for the events that occur during backup or during recovery, in the Default backup and recovery options. In this case, the settings set here will be effective for operations other than backup and recovery, such as archive validation or cleanup.
You can further override the settings set in the default backup and recovery options, when creating a backup plan or a recovery task. The settings you obtain in this case will be plan-specific or task-specific.