Issue level security is a way of hiding issues from a certain group of users.
You basically assign a security level to an issue and you define who has access to that security level in the security levels configuration.
This way you can hide issues from people that shouldn't see them. The permission you mention allows you to set the level on an issue.
https://support.atlassian.com/jira-cloud-administration/docs/configure-issue-security-schemes/
Hi,
Set issue security level is a permission that allow user to edit the issue security field.
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