The field Type is related to promotions. Based on the selected value, CPQ creates a dimension type for promotion. For example, you can create a quantity-based dimension by selecting Quantity from the Type drop-down.
To set up values for the Type field, go to Setup > Create > Objects > Price Dimension (Apttus_Config2__PriceDimension__c) > Type (Apttus_Config2__Type__c) field.