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Texture Type – Specifies the mode in which the displacement is rendered.

Normal Normal – Takes the original surface geometry and subdivides its triangles into smaller sub-triangles which are then displaced. It can be applied for arbitrary displacement maps with any kind of mapping.
2D – Bases the displacement on a texture map that is known in advance. The displaced surface is rendered as a warped height-field based on that texture map. The actual raytracing of the displaced surface is done in texture space, and the result is mapped back into 3D space. The advantage of this method is that it preserves all the details in the displacement map. However, it requires that the object have valid texture coordinates. You cannot use this method for 3D procedural textures or other textures that use object or world coordinates. The displacement map can take any values. 
Vector – If using a displacement texture that is not grayscale, V-Ray converts it to grayscale before rendering the displaced geometry. This mode allows V-Ray to use the Red, Green, and Blue channels of the displacement texture to displace the geometry in the U and V directions in addition to the direction of the face normal.
Vector (Absolute) – A vector-type displacement mode in which the texture is interpreted as 0.5-based tangent space displacement map.
Vector (Object) – Only meaningful, if a VRayPtex texture is used for displacement, where the texture values represent 0-based displacement in object space. If mesh information is stored in the Ptex file, V-Ray can also displace correctly mesh deformations.

Amount – The amount of displacement for white areas of the displacement map. If Use Global Settings is enabled, this value is multiplied by the global displacement Amount option.  A value of 0.0 means the object appears unchanged. Higher values produce a greater displacement effect. This can also be negative, in which case the displacement pushes geometry inside the object.

Shift – Specifies a constant which is added to the displacement map values, effectively shifting the displaced surface up and down along the normals. This can be either positive or negative.

Water Level – Geometry below this displacement level threshold is clipped away. This can be used for clip mapping a displacement map value below which geometry is clipped. 

Options

Flip Green/Blue – When enabled, the Green and Blue channels of the supplied texture map are swapped. 

Use Bounds – When enabled, allows the user to set the minimum and maximum values for the displacement texture. 

Min/Max Bound – These two options allow you to specify custom boundaries for the displaced geometry when Use Bounds is enabled. By default is limited to values between 0 and 1.

Show Advanced Options – Enabling this option exposes some advanced options in this tab.

Options

Keep Continuity – When enabled, V-Ray produces a connected surface. Use it when you get splits (usually around sharp edges) in the displaced geometry. 

Cache Normals – When enabled, V-Ray generates and saves information about the normal of each newly generated vertex. This requires additional memory but speeds up the shading calculations during rendering.

Use Global Settings – When enabled, the global Displacement quality Displacement quality settings from the V-Ray Renderer are used.

View Dependent – Determines if view-dependent tessellation is used.  When enabled, Edge Length determines the maximum length of a subtriangle edge, in pixels. A value of 1.0 means that the longest edge of each subtriangle is about one pixel long when projected on the screen. When  View-dependent  is off, Edge length  is the maximum subtriangle edge length in world units.

Edge Length – The maximum length of a subtriangle edge after subdivision. This affects the degree of subdivision before displacement, which in turn affects the quality of the displacement itself. Each triangle of the original mesh is subdivided into a number of subtriangles. More subtriangles mean more detail in the displacement, slower rendering times and more memory usage. Less subtriangles mean less detail, faster rendering and less memory used. Units used for this parameter depend on the View Dependent parameter.

Max Subdivions – Controls the maximum number of subtriangles generated from any one triangle of the original mesh. The square of this value is used. For example, a value of 256 means that at most 256 x 256 = 65536 subtriangles are generated for any given original triangle. It is recommended that this value not be increased a great deal over the default value of 256. If you need to use higher values, it is better to first tessellate the original mesh itself into smaller triangles before starting the displacement process.

Render As Subdivisions – When enabled, the object is subdivided during rendering.

Preserve Map Borders – Specifies how to handle subdivisions of UV coordinates at UV seams. The possible values are:

None – UVs are always subdivided regardless of whether they are on a UV seam or not
Internal – Only preserve UVs if they are on an internal UV seam;
All – Does not subdivide UVs on UV seams.

Classic Catmull-Clark – When this option is enabled, V-Ray uses the Classic Catmull-Clark method for subdividing the mesh instead of the hybrid one used by default. This option should be enabled only if the mesh is composed entirely of rectangular faces or it does not work.

Advanced Options

Show advanced Options – Enabling this option exposes some advanced options in this tab.

Dive to Displacement Node – Press this button to dive into the Complex Material network of nodes and selects the Displacement Node.