You should choose COOLING mode when you want your air conditioner to control the temperature of your room using only cooling.
For Example: If you chose 25 ° C and your environment is warmer than 25 ° C, the Air Conditioner will run in Cooling to maintain the ambient temperature at 25 ° C and whenever the temperature rises, the unit will again operate to reduce the ambient temperature to 25 ° C. But if your environment is colder than 25 ° C, the unit will not activate the Heating cycle, if any, keeping only the fans on.
Whenever the temperature of your environment is below or around the chosen temperature, only the fan remains operating.