What exactly does it mean in the settings where is says allow other servers to relay this server, and the setting bellow that says allow other servers to make it public? Should these settings be set to yes or no?
If you're not familiar with this then you likely won't need to use that option.
If you want your server to appear in our directories and other third party radio directories then you will need your stream to be made "public". If your stream is set as "private" then you won't appear in any public radio directories at all.
As with both options, it's entirely up to you how you set them.