In the usual case, you won't have to choose this link-layer header type. The following paragraphs describe the exceptional cases, where selecting this type is possible, so you will have a guide of what to do:
If you are capturing on an 802.11 device on some versions of BSD, this might offer a choice of "Ethernet" or "802.11". "Ethernet" will cause the captured packets to have fake Ethernet headers; "802.11" will cause them to have IEEE 802.11 headers. Unless the capture needs to be read by an application that doesn't support 802.11 headers, you should select "802.11".
If you are capturing on an Endace DAG card connected to a synchronous serial line, this might offer a choice of "PPP over serial" or "Cisco HDLC"; if the protocol on the serial line is PPP, select "PPP over serial", and if the protocol on the serial line is Cisco HDLC, select "Cisco HDLC".
If you are capturing on an Endace DAG card connected to an ATM network, this might offer a choice of "RFC 1483 IP-over-ATM" or "Sun raw ATM". If the only traffic being captured is RFC 1483 LLC-encapsulated IP, or if the capture needs to be read by an application that doesn't support SunATM headers, select "RFC 1483 IP-over-ATM", otherwise select "Sun raw ATM".
If you are capturing on an Ethernet device, this might offer a choice of "Ethernet" or "DOCSIS". If you are capturing traffic from a Cisco Cable Modem Termination System that is putting DOCSIS traffic onto the Ethernet to be captured, select "DOCSIS", otherwise select "Ethernet".