This is a known bug; here's the string that's supposed to display: "With this option enabled, you will be prompted to confirm your decision to remove memorized spells or rest at an inn. With this option disabled, no confirmation window will appear when resting at an inn or removing memorized spells."
Although, now that I think of it, the whole setting should be renamed to something more descriptive. Like "Ask for confirmation when removing memorized spells or resting at an inn".
One of the first things we did when we started working on the Enhanced Edition was get rid of all the extraneous confirmation "nag" messages. This option lets you bring them back if you want them.
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