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could someone please explain what this means? I mean as in toggle off that my data is getting decrypted automaticaly?
Data blocks and filenames for data in users is encrypted with per-user keys based on their primary lock method, which is the Credential Encrypted (CE) data. A small subset of data is stored globally outside of users including global device settings, installed packages and Wi-Fi networks. This allows the device to partially function after reboot in the Before First Unlock state. Apps can go out of the way to implement special Direct Boot support for a subset of their functionality and specifically store data in Device Encrypted (DE) storage to support this mode. For example, the GrapheneOS System Updater supports this to download/install OS updates in Before First Unlock state.
We plan to add a toggle for requesting the Owner PIN/password in early boot and using it for Device Encrypted data, largely making it the same as Owner Credential Encrypted data. The overall metadata blocks where the encrypted filenames are stored are also Device Encrypted, with the filesystem structure including file sizes.