All terms: Display plots for all terms that include variables that are specified in the model. Plots that for terms that are not in the model display the data values.
For example, assume that a model specifies Categorical 1 and Categorical 2, but not the two-way interaction. If you select Only model terms, the interaction is not displayed. However, if you select All terms, the analysis includes the interaction plot for Categorical 1*Categorical 2 because both terms are specified in the model as main effects.