Always Show This Window: Brings up the configuration menu when Daggerfall Unity begins. Unless you never want to change resolution, mods, visuals, or interface settings, leave this on. You can still return to this menu if you disabled this option by editing an .ini file.
Vertical Sync: Links frames per second to monitor refresh rate. Many web articles and videos can help you determine whether VSync is good for your game performance.
Swap Health and Fatigue: Changes health to red and fatigue to green.
Invert Mouse: Moving the mouse down will make your character look up.
Mouse Smoothing: Slightly changes the mouse's movement so it slides more.
Left Hand Weapons: Makes your character swing weapons with the left hand.
Player Nudity: Removes the permanent underwear on the character display. This also allows certain quests to run, which are marked with an X in the fourth column of their quest list. If this is disabled, those quests will not be offered.
Click to Attack: Changes attack system to require a right-click instead of a dragging movement while holding the right mouse button.
Start in Dungeon: If enabled, new characters will begin the game in Privateer's Hold. If disabled, they will start outside Privateer's Hold.
Dungeon Textures: Determines the dungeon wall, floor, and ceiling textures. The various options are classic rendering, climate-based choosing, or randomly chosen. Classic did not use climate-based textures, but randomly rolled ones. Those who prefer uniform textures per climate can choose the climate-based setting. Forum source
Camera Recoil Strength: Determines how much the camera moves when receiving damage. More damage also increases the recoil.
Mouse Sensitivity: Determines how much the mouse reacts when you move it.
Weapon Sensitivity: Determines how much you need to move the mouse to swing your weapon, if click-to-attack is disabled.
Movement Acceleration: Determines how quickly you start and stop while walking/running.
Weapon Attack Threshold: Sets the minimum distance required by the mouse before you swing your weapon, if click-to-attack is disabled. This is changed via an .ini setting in the Daggerfall data folder. Forum source
Bows - Draw and Release: Changes bows to use a nock-and-release control rather than a click-to-fire system. Hold the right-mouse button to hold the arrow on the bow, and release when desired.
Free Scaling: Allows the GUI to scale as necessary to fit the resolution, ignoring requirements for a certain aspect ratio.
Countdown Quest Journal Clocks: Changes the journal system to show how many days remain to complete a quest event instead of how many days were given at the start.
Inventory Info Panel: Adds a small information panel on the inventory screen near the bottom-right which displays various details about a chosen item.
Enhanced Item Lists: Increases the number of visible item tiles in treasure piles from 4 to 16.
Talk Window Modern Style: Changes formatting of text while talking to peasants, using right and left justify and different colors to make the conversation stand out more.
Buff Icons Layout: Allows you to change where the enchantment icons are placed during gameplay.
Helm and Shield Material Display: Shows the material used in helmets and shields. These items use such materials but normally do not display them. Some characters unable to use materials such as Elven or Dwarven can provoke confusion when this setting is missing.
Geographic Background: Changes the character and inventory background to where your character is. If in a desert, the background will be a desert. If in a graveyard, the background will be a graveyard, and so on.
Dungeon Wagon Access Prompt: Determines whether the game will ask if you want to access your wagon, if possessed, when clicking on the dungeon exit. Wagons can still be accessed within a short distance of the exit if this is disabled.
Maximum Loiter Time in Hours: Changes how long your character is able to loiter for at one time. Range is 3 to 12.
Dungeon Ambient Light: Changes how dark dungeons are.
Night Ambient Light: Changes how dark outdoors is at night.
Player Torch Light: Changes how bright the light you radiate is.
Item-Based Player Torch: When enabled: to radiate light during gameplay, you must use candles, torches, and lanterns. New characters will be created with several torches and candles. Use the "use" action in the inventory to ignite or douse a light source. Buy oil in stores to refuel light sources. Check their quality with "info" as you use them, as damaged light sources are low on fuel.