This is a security setting that allows the files you upload/insert in Sheets/Docs/Slides to be accessed by other users who have access to the respective files.
You can share some files with one type of access and others with a different type of access. The access setting must be set before you insert/add files to your Sheets/Docs/Slides. The default setting is PRIVATE.
The options from the most secure to the less secure:
PRIVATE – Only people explicitly granted permission can access the files inserted with FileDrop.
DOMAIN WITH LINK – People in your domain who have the link can access. Not for users with @gmail.com.
DOMAIN – People in your domain (email@domain.com) can access. Not for users with @gmail.com.
ANYONE WITH LINK – Anyone who has the link can access. For any type of Google emails or Workspace accounts.
ANYONE – Anyone can access. For any type of Google emails or Workspace accounts.