If you disable it, Windows will also check for bad sectors on the drive to assess the integrity of the files and potential risks to other files you store on it. Quick format is an option enabled by default to speed up the process.Volume label is the name that's associated with the drive when you plug it into a device.Nowadays, most files are too large for this to make a huge difference, so the default value should be good enough.

exFAT is usually the best balance of compatibility and functionality.

Capacity is the size of the drive, and it can't be changed.