The ‘Proxy type’ drop-down allows you to configure what type of proxy you want PuTTY to use for its network connections. The default setting is ‘None’; in this mode no proxy is used for any connection.
CONNECT
command, as documented in RFC 2817.
connect myhost.com 22
to connect through to an external host. Selecting ‘Telnet’ allows you to tell PuTTY to use this type of proxy, with the precise command specified as described in section 4.16.5.
The ‘Proxy hostname’ field will be interpreted as the name of a PuTTY saved session if one exists, or a hostname if not. This allows multi-hop jump paths, if the referenced saved session is itself configured to use an SSH proxy; and it allows combining SSH and non-SSH proxying.
-J
option).
This could be used, for instance, to talk to some kind of network proxy that PuTTY does not natively support; or you could tunnel a connection over something other than TCP/IP entirely.
You can also enable this mode on the command line; see section 3.11.3.27.