Top normal means that the derailleur's spring pulls it towards the small cogs (high gear); so when the shifter releases cable, it shifts to a higher gear; when pulling cable it shifts to the larger cogs (low gear). Usually recommended for use with Rapidfire.
Low normal is the opposite -- the spring pulls it towards low gear, hence the name. Recommended with dual control shifters.
Therefore, match the derailleur type with your shifter of choice. As for which type is better, that is subject for another thread!
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