Home Router as a DHCPv4 Client

The connection type of 

Automatic Configuration - DHCP is used when the router is connected to a DSL or cable modem and acts as a DHCPv4 client, requesting an IPv4 address from the ISP

Home routers are typically already set to receive IPv4 addressing information automatically from the ISP. This is so that customers can easily set up the router and connect to the internet