Absolute Relative

Absolute mode (default)
The exact cell locations are recorded: editing A3 will edit A3 every time the script is run.
Better when the cells you work with are the same cell addresses every time.

Relative mode
Relative mode helps your recorded script be more flexible. When you don't have the exact same cell positions of the data you're working on, you can turn on relative mode.
The cell locations are based off your selected cell. If you start recording the script with cell A1 selected and edit A3, the script always edits the cell that is two rows below the currently selected cell.
Best used when your script acts on the current cell or surrounding cells.