Type 1 (HVD - High voltage disconnect) used to control any charger that can be DSSR20, an MPPT solar charger with remote ON/OFF, a grid charger or a battery to battery charger.
Type 2 (LVD - Low voltage disconnect) used to control any load like in most case an inverter or something like a Victron BP-65 for small DC loads.
Type 3 and 4 are the same as 1 and 2 but based on SOC instead of voltage and should only be used as alarms not to control devices that is what the SOC setting is for in the EXT IO just for this type 3 and 4
Type 5 is for fault conditions when something went wrong and you get to secondary high or low voltage limits named under voltage or over voltage lock. This is not necessary but can be used as backup in case one of the chargers or loads fail to respond to remote ON/OFF control (very unlikely that will ever happen) and the you can have something like a remote triggered circuit breaker than can be tripped by this type 5 signal and manual intervention will be needed to check the fault, repair and then reset the breaker or breakers.
Type 6 is for dual PV setup where you install two PV arrays ideally one 2x larger than the other and that 2x larger PV array will be set as type 6
Say you have a 24V 120Ah battery that ideally will be charged with max 40A that means 4 of those large 60 cell panels so two DSSR20 for each set of two parallel panels controlled by SBMS0 EXT IO4 set as type 1 now if you want to have a larger PV array to help with those days where there is less sun but do not want to increase the battery size as that is much more expensive then you can just add another 8 panels and 4 DSSR20 as a second PV array and this can be controlled by the EXT IO5 set as type 6
So what will happen now is that when is sunny the 4 panels in first PV array controlled by type 1 will be enabled and as soon as the amount of sun drops below 20A (the 40A limit will be set in DMPPT settings in the SBMS) the 4 panels will be disconnected and the 8 panels will be connected that now should provide around 40A if those 4 panels where providing just under 20A and now if there will be even less sun and this 8 panels controlled by type 6 drop below 66% 26.4A the the 4 panel PV array will also be enabled still getting around 40A if then there is a bit more sun one of the PV array will be disconnected to maintain the charge current below 40A
This can provide up to about 3x more energy in a cloudy or overcast day and it will provide more even in a sunny day as all panels will be connected in the morning and later in the afternoon when sun is at an angle and less solar gets to panels.