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Carrier settings updates are small files (about 10k) that are downloaded from iTunes to be installed on your iPhone or iPad Wi-Fi + 3G. The carrier settings can include updates to the default APN (how the device accesses the carrier's cellular data network). The carrier settings for iPhone also include special dialing codes at Settings > Phone > [Carrier] Services, default settings for Stocks, Maps, Weather, and other items. You should install the latest carrier settings updates for your device as soon as they are available.
Hope this helped...
It looks like a carrier update to help the phone connect better with the carrier. Notice in your settings it went from Verizon 9.somemthing to Verizon 10.1