Basically, compression just reduces the filesize of your textures in exchange for them getting some artifacting and generally just looking worse.
I wouldn't worry about compressing your textures unless you're making some huge total-conversion mod. The difference in filesize will be negligible if all you have in your mod are four icons for a custom civ plus an alpha icon. I've always found that my icons look a lot worse with compression, too.
Thanks everybody.
@Vicevirtuoso I am making a total-conversion. Do you have any tips I should follow to better learn how to use the compressions properly?
In that case, I'd recommend testing your textures in-game after compressing them with the various methods and see which one works best for you. There were some cases where I'd compress my textures, and then the icons would not appear in a certain size.
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