You are not getting an option to create list custom settings. Which setting needs to be enabled?

Quick answer

Enable the Customize Application system permission on your profile (or assign a profile/permission set that includes it). Without this permission you won’t see the Create/Manage Custom Settings options — including the ability to create List Custom Settings.

Why this permission is required

Custom Settings (both List and Hierarchy types) are part of the application configuration. Salesforce restricts access to make changes that affect org configuration to users with the Customize Application permission. If that permission is missing, the Setup UI hides or disables creation options for custom objects and settings.

How to enable it (step-by-step)

As a System Administrator or a user with the ability to modify profiles/permission sets, follow these steps:

Setup → Users → Profiles → [Choose Profile] → System Permissions → Edit → check "Customize Application" → Save

Or grant it via a Permission Set:

Setup → Permission Sets → [New or choose existing] → System → System Permissions → Edit → check "Customize Application" → Save → Assign to user

Troubleshooting tips

  • If you still don’t see Custom Settings after enabling the permission, ensure you also have View Setup and Configuration and that your browser cache is cleared or session is refreshed.
  • In locked-down orgs (Managed packages or certain partner editions), some metadata operations may be restricted — check with your Org Admin.
  • If you’re using Metadata API / IDE to deploy custom settings, ensure your API user has Modify Metadata Through Metadata API permission.

Summary

Grant Customize Application via the user’s profile or permission set — this is the setting that enables creation of List (and Hierarchy) Custom Settings in Salesforce.