By allowing coupons to be combined with promotions, your customers may be able to get a discount from a coupon along with being able to get a discount from a promotion. If you've allowed for promotions to be applied with coupons, then the coupon will be the first discount applied. After the coupon has been applied, the promotion will be applied to the discounted price.
If you don't want to allow shoppers the ability to get both discounts, don't select this option.
To learn more about coupons, and how they can be used, please see our Coupon Manager Overview.