Music Hall USB-1 Turntable set PHONO/LINE switch?

I have a 1979 vintage Yamaha CR-220 receiver with a PHONO input stage to connect a turntable, hookup is standard two RCA inputs plus the ground wire terminal. However, I have a new Music Hall USB-1 turntable that has a built in phono preamp and outputs are 2 RCA terminals to a receiver or amplifier.

On the back of the Music Hall USB-1 turntable is a PHONO/LINE switch. For a receiver such as my Yamaha CR-220 with a PHONO stage what setting for the PHONO/LINE switch would I select on the USB-1 turntable? When would LINE or PHONO be the correct choice to select when using the USB-1 turntable with an amplifier or receiver?
Phono setting for the cartridge signal to be directly input to your Yamaha PHONO input. This should bypass the turntables built in preamp and use the Yamaha's. The line setting would output a signal already amplified by the the turntable's internal preamp and should be input into the AUX or any other line level input (ANY one but the Phono) on the Yamaha.
Thanks for the very detailed answer! The directions in the manual with the USB-1 are not that clear for proper hookup. Plug & Play is not as easy as it is claimed to be by Music Hall for this turntable. What you clearly stated in your response SHOULD BE IN THE MANUAL. :)