It means that you wanted something more, but in the end you'll take what you can get.
"I wanted a Ferrari, but I'll settle for less. I got a Ford instead."
٨ فبراير ٢٠١٢
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Accepting something less than what you expected.
٨ فبراير ٢٠١٢
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settle for = agree on
You want $1000, but you settle for $500 (which is less).