The Parameterization drop-down list is enabled when only one section group has been selected. You can choose one of the following parameterization types for the section:

Curvilinear the section curves don't need to form a chain. Chains — one or more — are automatically determined by the program. Each chain results in a separate surface.
Intrinsic the selected curves are not chained. Each curve is swept independently (thus resulting in a separate surface).

When more than one section groups are selected, the section parameterization is Curvilinear.