“none” means no volume control. This is basically what you use if you have a DAC and AMP after the Raspberry Pi.
That leaves volume control if you have the Pi act like DAC and/or AMP.
‘Software’ means that the software will increase/decrease the volume by changing the signal (digitally). ‘Hardware’ means that the DAC/AMP is capable of doing this in hardware (mostly analog).
General rule of thumb: hardware volume control is better than software volume control.