This policy setting allows you to set the "Correct accidental usage of cAPS LOCK key" option in Word Options | Proofing | ...

This policy setting allows you to set the "Correct accidental usage of cAPS LOCK key" option in Word Options | Proofing | "AutoCorrect Options..." | AutoCorrect.

If you enable this policy setting, "Correct accidental usage of cAPS LOCK key" will be set.

If you disable or do not configure this policy setting, "Correct accidental usage of cAPS LOCK key" will not be set.y