Cookie Targeting allows to show a campaign or creative only in case when the adserver is sure that the users browser accepts cookies (technically). There are no further settings to this targeting.
Once it is activated, the adserver will only deliver to visitors that have cookies present. This means, that the first request of the visitor will never deliver a campaign or creative with this setting if the visitor never had any contact with the adserver before. With the first request, the adserver will set a cookie, which then can be read with the second request.
Please also note that this targeting does not mean, that all cookies are possible to set and/or that the cookies will last. It is still possible that the cookie will not be accepted or be deleted by the browser in the future.