You can think of configuration options as a set of rules that define how SQL Server is configured and used. Individual server instances can have different configurations, as can the databases they support, the connections made by applications, and any statements or batch programs that are executed.
Configuration options can be set for:
A specific server instance. Server options are also referred to as instance-wide options and are set by executing the sp_configure stored procedure.
A specific database. Database options are also referred to as database-level options and are set by executing the ALTER DATABASE statement. The database compatibility level can be set ...