If your Mac already has Mac OS X installed, you might want to install a fresh copy of it. The Erase and Install option removes all the content on your Mac before installing a new copy. This is the quickest install method because it erases all the previous data and settings instead of moving them to another location. The option consumes minimum amount of storage space.
The Erase and Install option is good for you if your Mac OS X has an issue and you already have tried Archive and Install but it did not help. This is also good if the existing information on your computer is no longer needed.
If you opt for Erase And Install, you can also choose one of these volume format types:
1- UNIX File System
2- Mac OS Extended (Default)