Unlike a CLMM the DLMM gives you more options to shape your liquidity, in order to maximize your capital efficiency or match your LP goals.
A flat, uniform distribution that is simple yet effective and can be used on any token pair in any market or conditions. This is basically the same as a CLMM position. If you are ever in doubt what to use, use spot. It is excellent when a token price is moving very quickly back and forth through your range without leaving.
The curve allows you to focus the majority of your liquidity around a specific price point. If you believe that the price of a token will not move very far from the current price, the curve will maximize your capital efficiency. It is great for stable coin pairs or other correlated pairs. It can be used quite well in more volatile situations, but carries with it a significantly higher risk
An inverse curve. This is frequently used in single sided situations, especially if you want to DCA (Dollar Cost Average) in or out of a token. With the Bid-Ask you are either buying more of a token at lower prices, or selling more at higher prices. If you are familiar with trading, the concept is simple. Buy low, sell high. The disadvantage is when the price is at the smaller end, you earn less in fees because your liquidity amount is much smaller.