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"Done" means

Specify how the gadget should consider issues as done when determining the work completed.

The default option is Issue is in last column of the selected board, which means that issues are considered done when they reach the last column of the board or, more exactly, a status that is mapped to the last board column.

ChooseIssue is in one of these statuses, and then select one or more workflow statuses, to consider issues as done when they reach one of these custom statuses.

Options for including sprints

The gadget displays the closed sprints, but you can choose to include only certain sprints or the active sprints. Check Only sprints whose names contain... and enter the text to match if you want only specific sprints to be displayed by the chart. This option is useful when you want to filter out some of the board's sprints.
Also, you can check Only sprints completed between... and enter the dates of the time interval if you want to display only the sprints that were completed (closed) in that time interval. This option is useful when you want to see the velocity for past sprints. For example, the sprints from the previous year.
Check Include also the active sprint(s) if you want to display the active sprints (if any) along with the closed sprints.

Show legend

Check this if you want the chart legend to be displayed.

Tilted labels for x-axis (avoid overlapping)

Check this to avoid overlapping of the x-axis labels.

Show data table

Check this option if you want a data table to be displayed along with the chart. The Data tab displays all the sprints along with the issues that affected their velocity. The issues that had zeros on all the columns are not displayed.

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Display all series as lines

Check this option if you want the chart to have all the series displayed as lines (instead of bars).

Display horizontal gridlines

Check this option if you want the chart to display gridlines for the vertical axis.

Refresh cached data at next display

This gadget uses data caching for faster display, which means that some data resulted after processing are saved and reused next time the gadget is loaded. If you check it, the cache of the gadget will be deleted and recreated at the next reload. This setting is not persistent.