Enhanced High Rate Packet Data (eHRPD). eHRPD is an enhancement of 1xEV-DO (AKA HRPD) that enables LTE to CDMA handover.
Thus, your phone must be set to eHRPD mode in order for it to hand-down into 3G coverage when the 4G network is not available. Without eHRPD, your phone simply drops your data connection, and then starts searching for coverage within 3G. Ideally, with eHRPD your data packets are re-routed from the 4G network to the 3G network, and your phone is transferred to the 3G signal without interruption.
ie: both settings will result in your phone using LTE when available.
For what it's work, I just followed the instrunctions at the link provided by PJnc284 and my phone is now showing 3G, in an area where 4G coverage is very strong. I too am going to let this phone ride through a day on 3G only to see if how it affects battery life.