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When I look at the options used from Internet Explorer for the cookies, I read the following description:

Blocca i cookie di terze party privi di una versione compatta dell'informativa sulla privacy.

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The screenshot has been taken from Internet Explorer 9, but that sentence was used also in previous versions. This is the screenshot for the English version.

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The sentence that isn't clear to me is Blocks third-party cookies that don't have a compact privacy policy.

From that description, it seems the cookies should include a compact description of the privacy informative, but I don't get how cookies can contain that information, or what happens with cookies set from sites outside the European Union.

What cookies are exactly blocked?

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The actual English text is:

Blocks third-party cookies that do not have a compact privacy policy.

This means that all cookies from third-party sites (ie. other than the site you're currently visiting) will be blocked unless the site can present a valid P3P privacy policy.

From techliberation.com:

A P3P compact privacy policy is a machine-readable summary of the full P3P specification, which is a standardized method for explaining a website’s privacy policy.

This privacy policy isn't contained in the cookie itself, but instead is served by the web server, either as a separate file or a specially formatted HTTP header (see this MSDN article for more in-depth information and examples). The browser will need to know to look for this information before saving a cookie, and currently Internet Explorer is the only major browser supporting P3P.

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