Use these settings for relaxing vertices in Interactive Manipulation mode. Relax in Edit/Editable Poly works much like the Relax modifier: It normalizes the distance between each affected vertex and its neighbors by moving the vertex toward the average position of its neighbors.
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Select an Edit Poly or editable poly object. >
Modify panel > object level or any sub-object level > Edit Geometry rollout > Relax > 
(Settings)
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Select an Edit Poly or editable poly object. > ribbon > Modeling tab > Polygon Modeling panel >
(Polygon) sub-object level > Geometry (All) panel > Shift+click 
(Relax) or choose Relax Settings from the drop-down list.
Interface
Relax uses the caddy interface when Enable Caddy Controls is on; when off, the standard settings dialog is used. For details on using the caddy controls, see The Caddy Interface.
Left: the caddy interface; Right: the standard dialog
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Amount -
Controls how far a vertex moves for each iteration. The value specifies a percentage of the distance from the original location of a vertex to the average location of its neighbors. Range=-1.0 to 1.0. Default=0.5.
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Iterations -
Sets how many times to repeat the Relax process. For each iteration, average locations are recalculated and the Relax Value is reapplied to every vertex. Default=1.
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Hold Boundary Points -
Controls whether vertices at the edges of open meshes are moved. Default=on.
When on, boundary vertices do not move while the rest of the object is relaxed. This option is particularly useful when working with multiple elements within a single object that share open edges.
When this checkbox is off, all vertices of the object are relaxed.
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Hold Outer Points -
When on, preserves the original positions of vertices farthest away from the object center.
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OK -
Applies the settings to the current selection and closes the interface. Keyboard equivalent: Enter
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Apply and Continue -
Applies the settings to the current selection, retaining them for the preview if you then change the selection. Keyboard equivalent: Ctrl+Enter
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Cancel -
Closes the interface without applying the settings to the current selection. Does not reverse previous uses of Apply And Continue. Keyboard equivalent: Esc