The second tab under Environment contains the Emulation options.
Figure 3.3 The Emulation tab of the Environment Preferences
Here you can configure the editor to behave according to one of two pre-defined editor input styles (emulations) which determine how keyboard input is processed and other properties such as the shape of the input cursor. You can also set the cursor blink rate and specify a key to use as an Emacs Meta key.
The choice of emulation affects the Editor and other LispWorks tools containing editors such as the Output Browser, Stepper and Profiler.
LispWorks IDE User Guide (Macintosh version) - 25 Nov 2011