This options means something completely different. It means that your pages won't be indexed by search engines like Google, Bing, etc., not the internal search functionality of Sitefinity.
I hope this explains it.
the Telerik team
Do you want to have your say in the Sitefinity development roadmap? Do you want to know when a feature you requested is added or when a bug fixed? Explore the Telerik Public Issue Tracking
system and vote to affect the priority of the items