These options control which items appear in the various drop-down menus of the breadcrumb path field (on the location bar).
Archives: Shows archives in the drop-down menus as if they were folders.
Desktop sub-folders: Shows any folders on the desktop in the Desktop branch drop-down.
Empty drives: Shows empty disk drives in the This PC branch drop-down.
Favorites: Shows your favorite folders in the Desktop branch drop-down.
Hidden folders: Shows hidden folders (ones with the H attribute but not the S attribute) in the branch drop-down menus.
System folders: Shows protected operating system folders (ones with both the H and S attributes set) in the branch drop-down menus.
Non-drive folders under This PC: Enable the display of non-drive folders in the drop-down for the This PC folder.
Most options default to use the same settings as on the Folder Tree Contents page.