Censor Option would work something like this:

Censor Option Yes/No - skips scenes with explicitly sexual content or blurs out nudity if the scene is essential to the story. Also removes unnecessary vulgarity.

By default, the selection is No.

This is just one example: You leave it as no. You trigger Astarion's sex scene by agreeing to join him that night. You see the whole scene in its entirety. Astarion makes out with your MC, the scene shows the two of you doing things. Whatever dialogue is in the actual sex scene occurs, but it is not really vital to the story or character development. It is basically just sex scene dialogue. Then, after it is over, your MC wakes up and has the next morning dialogue with Astarion which actually is meaningful to his character and to the development of your MCs relationship with him.

You reach Grymforge. The duergar guy says, "Where's Thrynn?" Answer: "Probably still choking on Nere's prick." All background dialogues are also included because Censor Option is No.

Now, let's say you change Censor option to Yes. This is how both scenarios would go:

You trigger Astarion's sex scene by agreeing to join him that night.
Fade to black. Then, after it is over, your MC wakes up and has the next morning dialogue with Astarion which actually is meaningful to his character and to the development of your MCs relationship with him.

You reach Grymforge. The duergar guy says, "Where's Thrynn?" Answer: "Probably still [audio cuts out and subtitles black out the text indicating that it is vulgarity]. All background dialogues containing any sort of vulgarity are also disabled with no subtitles appearing on screen because Censor Option is Yes.

Another example: Minthara's sex scene. You agree to sleep with her. Option is No for Censor, and you see everything. Option is Yes for Censor, and as soon as you agree to sleep with her, the scene cuts to the first dialogue snippet that actually has any kind of character development, background, etc. If Minthara and your MC are naked, the screen blurs out the naughty bits. The dialogue commences, and as soon as the important dialogue is finished, the scene cuts again.

In other words, if Larian doesn't think that ANY dialogue text or audio is important to character development, etc. the whole scene is simply auto-skipped. The game tags your MC as having had the encounter, but you, the player, saw nothing. You got the idea what happened, and that's all you need. The rest is left to your imagination.

Lae'zel, if remember right, would be a good example. I don't think she had ANY important dialogue. So, Censor Option is Yes? You trigger the scene. Boom! Next day. Maybe she makes a comment or something to imply that you had a rather painful encounter or whatever, and that's it. Game continues.

In this way, I could trigger ANY romance and not have to worry about getting an eye-full. I could safely watch SH's romance scene without fearing it's going to get raunchy. I could get Minthara's important backstory details without watching her do naughty things with my MC.