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We currently have them checked to override except for direct and abandon session refresh.
If you have this same setting, direct is a % of traffic to the channel. (i.e. when breaking down paid search, one of the referrers will be direct (typed/bookmarked). Good to know when doing analysis on your direct channel, b/c it shorting the actual traffic from the channel and attributing to last touch channel that is set to override.
This link my also clarify the usability of the feature:
http://blogs.adobe.com/digitalmarketing/analytics/marketing-channels-overrides-who-gets-the-credit/
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