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Clicking one of the boxes in the upper part of the screen will tell the game which situations and events you want to be handled automatically when you press CONTINUE. For example, if you have "Important league events" checked and are currently on draft day, the game will do your drafting for you. This allows you more precise control of when the game interrupts you to request your input.
You can also choose how to have the button handle your games. If there is a game scheduled for today and the "Show & play today's game" button is clicked, clicking CONTINUE will take you to the game. If it's not checked, the game will be simulated automatically when you continue.
The auto-play options will allow the continue button to advance the game a set number of days unless it reaches a game to play (assuming the "show & play" option is selected.) The time period of the autoplay can be set separately for the regular season and the offseason/preseason, allowing you to, for example, move ahead faster when there is less happening in the offseason.
Finally, you can choose to hide the CONTINUE button entirely if you do not wish to use it.