CodeSnip is more than just a simple repository for your code snippets. If you're using Pascal it can do some other things like generate compilable units and test-compile your code. To be able to do this CodeSnip needs to know something about your code. For that reason each snippet must be identified as one of six kinds, and there are rules governing the layout of the source code for each kind. The six kinds are:
If you want to be able use all of CodeSnip's functionality you must designate each of your Pascal snippets as one of the the first five kinds. Use the "learn more" links to find out what you need to do to comply with the requirements. Another way to learn is to examine the code from the main DelphiDabbler Code Snippets database, since it all conforms.
On the other hand if you don't use Pascal or don't need CodeSnip's advanced support for Pascal code, just designate everything as freeform. Or mix and match. It's up to you.