The Entry Content pane lets you define a few options, such as the spacing between each Gutenberg block as well as the link decoration for unstylised links throughout your website.
This option is easy to understand.
Many (core) Gutenberg blocks do not have spacing options, which makes for a limited choice when designing your website. Content Spacing lets you define the spacing between these elements to get a tighter design, or a more spacious one.
The Links Type option lets you define how unstylised1 links appear on the website. There are five choices available that range from no effects at all, to having a nice looking overlay effect upon hovering.
1. Unstylised links
Unstylised links refer to the ones that have been inserted and not customised further using the editor that you’ve chosen. Though, please note that some editors might still override these link types forcefully.