There is no "saturation" knob.
Depending on how you set the SUSTAIN, RATIO & ATTACK knobs (and your guitar volume), the first stage will saturate, at least for a few 10s of ms, while the gain control loops responds to the abrupt signal increase when you strike the strings. You have a choice: the tone of an opamp saturating or the tone of an LED soft limiter. I prefer the latter. If you want the last dB of headroom, leave the LEDs out. If you like the tone of the opamp saturating, leave the LEDs out. As you turn RATIO down, the LEDs have less effect. This compressor has 6 knobs. That's a lot of degrees of freedom. Some of them interact. Not all combinations will sound good. It will take a while to find the combinations you like.
[EDIT}
Whether the LEDs come into play also depends on the LDR's speed and resistance range, amount of light landing on the LDR, etc. The RELEASE knob not only controls the release rate, it also controls the maximum brightness of D3. Turning RELEASE up reduces D3's max brightness which could reduce compression.