If you change the access permission for a folder containing subfolders, the Propagation of Permissions dialog displays so you can choose to propagate the permission change to the subfolders as well.
Access Control List
Any changes to users or groups assigned to the current folder are propagated to any subfolders that also have those users and groups assigned. This is the default setting.
Override the Access Control List
Security overrides that are applied to a folder with subfolders will launch the Propagation of Permissions dialog.
Any changes to users or groups assigned to the current folder are propagated to any subfolders that also have those users and groups assigned. This is the default setting.