Yep, this phone ships in Global Mode. This is the correct mode for normal operation in the US. It will use Verizon's (LTE/CDMA) network when available, and automatically switch to roaming on other CDMA or GSM networks if Verizons network is not available. If you don't use the Global mode, you may get prompted to enable it if you leave Verizon's coverage area.
The options to force LTE/CDMA or GSM seperately are really only useful in specific situations - e.g. you are in a marginal coverage area and the phone keeps switching.
On previous Verizon phones some people reported the global mode using more battery, but I haven't heard of anyone seeing a significant difference on the Note 2.