
Explanation:

Box 1: Information protection
Automatically encrypt documents stored in Microsoft OneDrive and SharePoint.
How to integrate Microsoft Purview Information Protection with Defender for Cloud Apps Enable Microsoft Purview Information Protection All you have to do to integrate Microsoft Purview Information Protection with Defender for Cloud Apps is select a single checkbox. By enabling automatic scan, you enable searching for sensitivity labels from Microsoft Purview Information Protection on your Office 365 files without the need to create a policy. After you enable it, if you have files in your cloud environment that are labeled with sensitivity labels from Microsoft Purview Information Protection, you'll see them in Defender for Cloud Apps.
To enable Defender for Cloud Apps to scan files with content inspection enabled for sensitivity labels:
In the Microsoft 365 Defender portal, select Settings. Then choose Cloud Apps. Then go to Information Protection -> Microsoft Information Protection.
Note: Encryption of data at rest
Encryption at rest includes two components: BitLocker disk-level encryption and per-file encryption of customer content.
BitLocker is deployed for OneDrive for Business and SharePoint Online across the service. Per-file encryption is also in OneDrive for Business and SharePoint Online in Microsoft 365 multi-tenant and new dedicated environments that are built on multi-tenant technology.
Box 2: Settings
Enable co-authoring for Microsoft Office documents encrypted by using a sensitivity label.
1. Sign in to the Microsoft Purview compliance portal as a global admin for your tenant.
2. From the navigation pane, select Settings > Co-authoring for files with sensitivity files.
3. On the Co-authoring for files with sensitivity labels page, read the summary description, prerequisites, and what to expect.
4. Then select Turn on co-authoring for files with sensitivity labels, and Apply.
5. Wait 24 hours for this setting to replicate across your environment before you use this new feature for co-authoring.
Reference:
https://learn.microsoft.com/en-us/defender-cloud-apps/azip-integration
https://learn.microsoft.com/en-us/microsoft-365/compliance/sensitivity-labels-coauthoring