You want to know what Masquerading is, and how it differs from Aliases, which is in the same configuration area.
The following documentation explains the Alias and Masquerade features:
About aliases and address masquerades
The first line in the article above is:
An alias translates an email address into one or more destination addresses. Windows users may understand this concept as a “distribution list.”
The article implies that the features are related to internal addresses, so Masquerading will modify an internal address. In the article above, the Masquerade feature functionality is defined:
Address masquerading is a method of concealing email addresses or domain names behind the mail gateway by assigning replacement values to them.
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Outbound address masquerades change the apparent sender of a message. Inbound address masquerades change the apparent recipient of a message.
Also in the text, is this important note:
Except where address masquerading applies to a recipient address, you must add the source domain of an alias to the list of local domains for which Symantec Messaging Gateway accepts inbound email.