The Account Registration field-set controls how people obtain accounts on a Yioop installation. Its dropdown chooses one of four possibilities:
Choosing Email Activation means Yioop has to be able to send mail. How it does that is set apart from here, in the System Emails field-set on the Server Activity page, since Yioop sends mail for more reasons than registering: ballots, notifications and bulk mailings go the same way. That field-set says whether Yioop sends with its own built-in client or through somebody else's mail server, whether a message waits for the Media Updater or goes during the request, and which address it is sent from. See the System Emails help page beside it.
Nothing else on this field-set concerns mail. What a new account may do once it exists is set by the roles it is given, on the Manage Roles page.