Texel Density
In order enable automatic texel density setting before packing, you need to enable the checkbox in the Texel Density subpanel header:

When the subpanel is enabled, you can make the packer automatically set texel density for the input islands before packing by adjusting the Texel Density (px/m) option.
If the option is set to a value greater than 0, the packer will scale the islands before packing to set the requested texel density (unit to use: px/m). After setting texel density, the given islands will be packed with fixed scale (they won’t be scaled during packing in order to maintain the requested texel density).
Texel density is calculated using the Texture Size property from the Pixel Margin subpanel.
If the Texel Density (px/m) value is set to 0, texel density won’t be set - islands will be packed in the usual manner.
Note that both options: Texel Density (px/m) as well as Texture Size can be overridden on a per-group basis when using a group-based packing mode.
If the Arrange Non-Packed Islands option is enabled, islands with texel density set that cannot be packed (due to lack of space), will be arranged in a line above the target UV area after the operation is complete.