Factored load level refers to an ultimate limit state (ULS) (i.e. safety critical, if it exceeds this it may fail). Unfactored loads, also sometimes called service loads, refer to a serviceability limit state (SLS), which is not safety critical (i.e. how do people feel using this building day-to-day; does it deflect too much? vibrate too much?).
The factors shown in your image refer to the stiffness modifiers when analyzing at the ULS. At the ULS, concrete will typically be cracking or entering the plastic deformation region, resulting in lower stiffness and larger deflections, possibly driving a P-Delta effect and increasing loading. Because we typically complete elastic analyses (which are linear), we need to account for that lower stiffness that results from the plastic region & cracking (which are non-linear effects). These stiffness factors account for that lower stiffness, allowing P-Delta and other increases to be accounted for at ULS using elastic analysis.