[Holger]

Arlo is waterproof, we have them all three outside in the rain.
And yes, a lot of settings available.
You can set (for each) the area they should scan, how sensible they should react, how long time they should record when sensing movement, only email or email and push to app.
No LED when sharp recording, only if they are in test-mode, when you set up and check the captured area. then they blink orange when sensing movement. Great to check the placement without recording.
They have to be in the range of the controller (the cameras do not connect to your router directly), connected to the router. So, the controller can be placed in the best position as long as you can connect it to the router (LAN).

Arlo does not record or transfer sound.