These settings are hidden by design. The OpenLab uses a plugin called buddypress-docs-in-group, which forces all Docs interfaces to be located inside of wrapper of a single group. With this plugin active, permissions are inherited from the parent group. It's a bug that it shows on CBOX-OL.
The Settings section that appears when creating or editing a Doc should be hidden.
See: http://redmine.citytech.cuny.edu/issues/3174