Use internet recovery only if you plan to wipe the system or create a new partition with the original OS that came with your Mac, or replace the original storage itself after failure.
Use the partition option if you want to keep whatever is presently installed, and have space to put on a second system.
The disk#s# refer to various partitions. A partition is a uniquely definded group of sectors on the hard drive that can be used to define multiple unique formatting for the purpose of dual-booting two operating systems, or keeping a section of the hard drive available for erasing after archiving data away to two other external sources. On some Macs, such as those with a Fusion drive, the partition also separates the solid state from the platter part of the hard drive. Generally those are only found on iMacs, and generally the partition scheme is more smooth. There are directions on Apple Support to merge split Fusion drives, if you run into any.