Junip always needs to associate a review with a real individual (ie no bot, spam, fraudulent content). In most cases we already know who a customer is because we're sending them a review request email, so there is no "verification" required.
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In some cases where there is a publicly accessible form (such as the write a review button within product page widgets) we need the reviewer to confirm their identity by clicking our confirmation email.

The difference between a confirmed review and a verified review is as follows:

A review Junip knows came from a real person. Reviews submitted through a review request email are confirmed automatically - the customer could only get that link from us. Reviews submitted through a publicly accessible form (like the on-site "Write a review" button or a shared review link) are confirmed when the reviewer clicks the link in our confirmation email. This step keeps bots and fake reviews out, and applies to every public-form review.

A review that has been submitted and matches to a purchase made on your store will be considered a verified buyer review. Verified reviews are given the "Verified Buyer" badge on-site.

The setting controls whether reviews that haven't yet been confirmed are displayed on your site - that's all it changes. Confirmation itself always applies to reviews from public forms. Reviews from post-purchase review requests (the vast majority of reviews) never involve a confirmation step.