The definition of each erasure method is defined in Appendix A of the Eraser manual.
The default means Eraser will use the method defined in the Settings panel. There is one for file erasures and one for unused disk space erasures; depending on what you erase each default can be different. The erasure method can be overriden for files or disks individually when erasing them.
The best erasure method for you is really depending on what level of security you require. The greater the number of passes, the better the security, at the cost of execution time. However, since most people do not need that high levels of security, one pass is sufficient for most people, and there is currently no evidence that once data has been removed via a one-pass erase any data can be recovered. Having said that, there are some people who would like to use a greater number of passes.