Q: What is "Multiple Colors" Option?
A: Multiple Colors means if your product image contains models, texture, gradient, multiple colors on the same side or you want to show real product photography image while designing and changing product colors. In this case, you have to add actual product image as a color image while adding the product. The designer will load the actual image you added when the user tries to change product color.

* You can manage different product color set (which you need while adding products in admin). Here you can create a color set and add colors under these sets as you need. This will reduce your work while adding new products, there you do not need to add all the colors separately for every product while adding a product. You just create a color set add colors on the set and select the color set while adding product.