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Mode 1 is used in designs where data encryption is required. Whereas, Mode 2 is used in designs where data signing is required. You can find more details regarding BLE security modes from Bluetooth core specifications. You can download the specifications here.
To get started with PSoC 6 MCU BLE configuration and development, refer to https://www.cypress.com/documentation/application-notes/an210781-getting-started-psoc-6-mcu-bluetooth-low-energy-ble
The BLE Peripheral Driver Library (PDL) Component provides a comprehensive GUI-based configuration window to facilitate BLE application development. The component specific details are available here.
Hope it helps!