Overview
When a user inserts a CD-ROM into a drive or attaches a USB camera, Windows detects the arrival and starts a process of examining the device or searching the medium. It is looking for properties of the device or content on the medium so that AutoPlay can present a set of meaningful options to the user. When the user makes a particular choice, they also have the option to make that selection automatic the next time Windows sees that content or device.
The dialog shows the result of a user placing a DVD into a DVD reader, in this case the D: drive. AutoPlay has determined that content is most likely a DVD movie and presents a set of actions to the user based on that decision. These actions are called Handlers and there are sets of Handlers associated with various types of content. The user can now make their decision and click OK to proceed. However, if they also tick the "Always do the selected action" tick box at this point, they will not be prompted the next time that particular content type is seen on that particular drive; the selected application will automatically start.
Read more about this topic: Auto Play