What is filtering for a level metric?
The filtering setting for a level metric governs the relationship between the report filter and the calculation of the metric. The filtering options are:
How Absolute and Ignore Filtering modify the results of the report:
Take for example the following report and metric:
Report Filter: Year = 2004
Attributes: Quarter & Month
Metric: Level Profit

Because the Filtering is currently set to standard, then the report filter will interact with the metric calculation normally and apply the filter to the metric.
Now if the Filtering is changed to absolute, then again, nothing will change. Because the target is set at the Report Level, then the level of the target is not raised and the results remain unchanged.
However, if the Filtering is set to Ignore, then the Report Filter is ignored and additional 2003 data is displayed for the Level Profit as shown below:

This is because ignore Filtering will remove any report filters that are related to the target (parent or child). Because the Target is Report Level, which is the Month & Quarter, and Year is a parent of both of those, it is removed.
For more examples regarding Level Metrics, refer to the 'Level Metrics' section of the Advanced Reporting Guide.