What is form 1040 schedule 2

I've seen that phrase when entering a 1099-G for a state refund. Part of that section determines whether your state tax refund is taxable or not, but you can also choose to skip the review of your previous year return and elect to make the refund all taxable. 

If you do, then that flows to Schedule 1 and line 8 on the 1040. 

Do you have a line number on Schedule 2 or 1040 that you are seeing that phrase? Or somewhere else in the program?

I would never check that box but it is your choice. There are reasons that a state tax refund could be partially or fully nontaxable such as not itemizing, being in AMT, or other reasons. if you check this the refund will be taxed as income even if it was otherwise nontaxable or only partially taxable. 

I was referring to the blue button in the program that says "Make my full refund text".  Your response explained it. Thanks.