Graphical view is the visualization of linked and referenced assets.
You can see the graphical view of assets by clicking Graphical View on asset detail screen.
Depth is for the decide how many layer would you like to see on graph.
Include referenced assets on graph is for to see referenced assets on graph.
Only this asset's references is for to see referenced assets of just main node asset on graph.
You need to click Regenerate Graph to see your filter changes on graph.