The word 设定 is formed by combining two individual characters, each contributing a core meaning that merges into a new, unified concept. The first character, 设 (shè), carries the fundamental idea of "to establish", "to set up", or "to arrange". It is placed before the second character, 定 (dìng), which means "fixed", "settled", or "definite". The formation follows a logical, cause-and-effect sequence common in Chinese compound words: the action of setting up (设) leads naturally to the resulting state of something being fixed or determined (定). Thus, the compound 设定 conceptually means "an established and fixed arrangement", which is understood as a "setting" or "configuration".