At this stage of the installation, you need to choose the storage configuration for the future system. Possible partitioning options include installation on LVM (with a thin pool for virtual machine images) and software Btrfs RAID array. The partitioning scheme is determined by the "Layout Scheme" parameter.
By default, the sizes of the listed volumes are optimally set based on the total allocated space. If the total size is not changed, then all of the disk space will be used. Also, by default, approximately 1-2 GiB of free space remains untouched in the VG (this can be useful for creating a snapshot of the system).
You can also add new volumes via Volumes Table (or edit/remove existing). You may choose layout approach for them - either to create new volume as separate partititon (this can be useful with, for example, /boot), or as additional LV to VG. Filesystem type for new volume will match root's (ext4).