1. I'm not sure which navigation guide you're configuring (TV, Audio/Video Receiver, Roku, Contour, etc).
2. When you say "channel," do you mean TV channel or a speaker channel?
The keywords in your post are "passed through" and "best available."
Stereo: 2-channel audio (left and right speakers)
Auto Detect: Most soundtracks are encoded with either Dolby Digital or DTS. For whichever component you're configuring, it can decode up to 5.1 channels in either format.
Expert Mode: It's an elusive term but it means special logic. It could mean 2 things: high-end processing or not high-end processing.
If your media source (Blu-ray, game console, streaming) is encoded with more than 5.1 channels (6.1, 7.1, 9.1, 11.1) and your Audio/Video Receiver can decode that format, your component will not alter or process the audio signal but instead allow it to "pass through" to your receiver. Your receiver will then decode and steer the audio signals to the proper surround speakers.
If your media source is encoded with more than 5.1 channels but your TV or cables can't process the format, your components will negotiate the "best available" format.
As far as the explanation for Expert Mode..."best available Dolby sound will be passed through"...I don't know why it singles out Dolby. I'd assume it would pass through all formats, including DTS and THX. It's an odd explanation. Expert Mode should read as "Passthrough" or "A/V Receiver" or maybe just "Best Available."