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Texture Mode – Determines how textures' resolution/size are handled to help optimize memory usage. This options is hidden when Use System Memory for Textures is used. The possible values are:

Full size textures – Textures are loaded at their original size.
Resize all textures – Adjusts the size of textures to a smaller resolution to optimize render performance.
On-demand mipmapping – Instead of loading all the texture files at their default resolution (original or resized), V-Ray loads the textures as needed and automatically creates mip-map tiles for them (regardless of their texture type). As a result, the GPU memory consumption is decreased; textures that are not visible are not loaded, and textures that are further away from the camera are loaded with a lower resolution.
Compressed – Textures are loaded with compression to decrease GPU memory consumption. This texture mode sacrifices some texture quality to make the texture smaller (roughly ~75% reduction in memory usage). As a result, you need much less memory for textures enabling renders of bigger scenes. Not all textures are compressed using this option and exceptions are made based on the bitmap usage:

Texture Size – Specifies the resolution to which textures are resized when Texture Mode is set to Resize all textures.

Texture Format – The amount of bits per channel used to store the material texture information into memory. You can choose between 8 bit, 16 bit and 32 bit. This does not affect textures used for lights and displacement.

Use System Memory for Textures – Utilizes the CPU memory (RAM) when working with textures bigger than 1 MB, from where they are distributed on demand to all GPU rendering devices. This option effectively increases the memory capacity for textures at the cost of a small performance drawback. When this option is used, the Texture Mode option is disabled. The Legacy Out of core option is still available for old scenes that had it enabled.