The checkbox, ‘Allow Convert to Objects’ does what its name states thus enabling the users who have a high-enough level of the digitizer to convert lettering designs into objects. This is your choice. It allows you to control how others use the lettering designs, whether they are installed with BX or even if you give them a .BE file. Some fonts are given out in .BE form as training guides or as part of something more useful, while others are commercial in nature and the digitizer prefers not to allow conversion of the lettering into objects.
Conversion into objects allows the user to take a glyph and manipulate it, which is commonly done for logo work. Many corporate logos begin with a typical typeface and have glyph manipulation to make it specific to that logo.
Objects that have been converted from a lettering design will contain the same copyright information when using the menu View > About this page.