This policy setting determines whether Excel automatically creates hyperlinks when users enter URL or UNC path information.
If you enable this policy setting, when users type a string of characters that Excel recognizes as a Uniform Resource Locator (URL) or Uniform Naming Convention (UNC) path to a resource on the Internet or a local network, Excel will automatically transform it into a hyperlink. Clicking the hyperlink opens it in the configured default Web browser or the appropriate application.
If you disable this policy setting, Excel will not transform URLs and UNC paths to hyperlinks.
If you do not configure this policy setting, Excel will automatically transform URLs and UNC paths to hyperlinks and users can change the behavior by selecting or deselecting the "Internet and network paths as hyperlinks" check box under File tab | Help | Options | Proofing | AutoCorrect Options... | AutoFormat as You Type tab | Replace as you type.