Secondary Diffuse Bounces are Diffuse bounces after the primary FG rays have been sent out in the hemisphere above the FG point. When a primary FG ray hits an object, its material dictates whether there will be specular, glossy, or diffuse reflections/refractions.
The FG trace depth can specify how many levels of reflection, refraction, diffuse (6.5/3.4) secondary rays may be spawned. There is also a sum count like in regular ray tracing.
When GI is on, the photons in the photon map will be used instead of secondary diffuse rays. If the rays were not turned off, there would be duplicate light contribution. So when GI is on, its like turning off the secondary diffuse switch. Instead, the indirect diffuse contribution, for the point where primary FG rays hit objects, will come from the photon map.