This type of assignment is used when the work is performed outside of Moodle. It could be something elsewhere on the web or face-to-face. It may be a series of reading assignments that will be given only 1 grade at the end of the term. Regardless of the type of work assigned, students will see a description of the assignment, but can't upload files or enter a response.

Grading works normally, and you will get notification of your grade if it is a graded activity.