What exactly does normalization in CSS do?

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I was trying some code with unordered lists in HTML on JSFiddle and I was irritated to death to find out that the bullets in the <ul> won't show for no apparent reason. On trying different things on my code I finally came to realize that I needed to uncheck the 'normalized css' option on the jsfiddle page.

After that I Googled what it actually was and read this page from W3C.org. This page only talks about diacritics and accents, I get it. But why weren't the bullets showing up with the normalized css option checked? What are the other things that are affected if you select that option?

Thank you for looking in.

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