I was trying to add a directory as an include which contains all the header files and resides in the same project folder. I encountered an option saying "add to all configurations". What is this option supposed to do ? Would checking it mean that, that directory would automatically get included in all future projects ?
This is what I am talking about.
No, it just means all configurations for the current project. A configuration in this context is something like "Debug" or "Release" (you can also create additional ones). See the "Configuration" drop-down box visible in your screenshot (in the parent dialog).