There are two options under Cancel Form Applies to:, which is enabled when Allow User to Discard Changes and Cancel Execution is selected. The following options are available:
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If Current form only is selected, only the form that is currently displayed is canceled upon a user clicking the Discard and Cancel button. Workflow will not execute any further actions or rules in the same task list for that related form. Subsequent forms will be displayed.
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If Current and all subsequent forms is selected, the currently displayed form, all subsequent forms and the task list will be canceled upon a user clicking the Discard and Cancel button. Workflow will break all processing for the top-level item.