My understanding is that the "disabled" radio option just means the Gnome Tweaks program won't override anything. Caps Lock behavior will be the system default,

My understanding is that the "disabled" radio option just means the Gnome Tweaks program won't override anything. Caps Lock behavior will be the system default, instead of being changed by Gnome Tweaks. The other one is "Gnome Tweaks will override Caps Lock to disable it"