The Legacy animation system is the system that Unity used before they had Mecanim. Basically, you don't need to use it unless you have an older project that you don't want to update.
The Humanoid system is used for animating human body types. This can mean humans, robots, upright animals, or whatever else you can think of that looks like a human. In any case, for this type of animation, it is best to create the animations in a separate modelling program, and then import them to Unity. If the model is correctly rigged, everything should import very smoothly.
The Generic system is very simple. It is used for any type of animation that is not humanoid. You can use it to open a door, fire a gun, etc.. For this type of animation, it is probably easier to use the animation editor that Unity provides to make your animations.
Hope this helps.
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