Every query is compiled into an ABAP report. The entries in this drop down correspond to the different events in the ABAP reports. E.g. DATA is used to define the variables. Google 'abap report events' if you need more information regarding those. There is also information available specifically about the infosets if you google 'infoset custom code site:sap.com'.
if you want selection in Info set SQ02 do not want a certain category of records in the output, then go to SQ02 --> Extras-->Code tab --> Record Processing section,
ask to ABAPer wirte code for recording process particular Transaction code
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