When you right click on a Delphi form you get the popup context menu. The bottom option is Text DFM. This option can either be checked or not checked. What does it mean when this option is checked or unchecked?
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This option is used to select the format used to save your form (in binary or text format).
If you use the text DFM option, the form (dfm file) will be stored in a text format like so
object Form1: TForm1
Left = 451
Top = 290
Caption = 'Form38'
ClientHeight = 300
ClientWidth = 635
Color = clBtnFace
Font.Charset = DEFAULT_CHARSET
Font.Color = clWindowText
Font.Height = -11
Font.Name = 'Tahoma'
Font.Style = []
OldCreateOrder = False
PixelsPerInch = 96
TextHeight = 13
end

RobertFrank
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RRUZ
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3Remember, though, this has absolutely zero (0) bearing on how the forms is stored when it is linked into the resulting binary. It is *always* linked in in binary format. – Allen Bauer Jun 08 '12 at 23:53
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9@AllenBauer, but it does have a big bearing on what happens when a third-party component does something to the DFM and you have to edit it as text with Notepad to recover. :-) It also makes it easier on your version control system to store as text rather than binary. – Ken White Jun 09 '12 at 02:37
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10Always use text dfms so that you can make sense of changes in your revision control system – David Heffernan Jun 09 '12 at 08:49
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3I merely pointed this out because there are many who think that when you have text-based DFM files that is how they are linked into their binary. I've seen comments where folks have erroneously complained that leaving their forms as text "makes their application bigger" because it is linked in using that format. – Allen Bauer Jun 11 '12 at 00:56