The pocket container selection lets you select which custom containers can be opened from a pocket container. If you have 2 custom containers with the names pulverizer and smithing station, it should look like this:

All custom containers that are currently selected are green and all custom containers that are currently not selected are gray. Clicking an unselected container will select it and clicking a selected container will deselect it. When a player right-clicks with this pocket container, he will be able to choose from any of the selected (green) containers. If only 1 container is selected, the player will open that container right away.