This means that in theory some third-party cookies will be allowed if they are not considered to be "third party tracking cookies".
The Standard option gives you reasonable privacy settings it will allow normal "first-party" cookies that most websites rely on to work and will block "third-party" tracking cookies - which are often used by companies to track your behaviour across multiple websites. You are presented with 3 main options for privacy/blocking: Control of the Cookies settings are now combined with some other privacy controls which you can choose here.
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If you don't have Firefox and would like to try it out, you can download it from the Firefox Website. This guide will step you through the process of enabling Cookies in Firefox.