CONCAT_NULL_YIELDS_NULL will be always ON in the future so avoid setting it off. What this function essentially does is that when it is on it will return a null value when any other value is connected it with using + operator. If CONCAT_NULL_YIELDS_NULL is set to OFF it will return the original value instead of NULL.

Let us see a simple example of the same.

-- Before SQL Server 2012
-- SET CONCAT_NULL_YIELDS_NULL ON
SET CONCAT_NULL_YIELDS_NULL ON;
GO
SELECT 'Some Value' + NULL AS EarlierVersion;
GO
-- SET CONCAT_NULL_YIELDS_NULL OFF
SET CONCAT_NULL_YIELDS_NULL OFF;
GO
SELECT 'Some Value' + NULL AS EarlierVersion;
GO


However, in SQL Server 2012 the behavior of the ‘+’ operator remains the same but the behavior of function CONCAT is bit different and it totally ignores this value. Here is the example of it.

--- SQL Server 2012 and onwards
-- SET CONCAT_NULL_YIELDS_NULL ON
SET CONCAT_NULL_YIELDS_NULL ON;
GO
SELECT CONCAT('Some Value', NULL) AS SS2012;
GO
-- SET CONCAT_NULL_YIELDS_NULL OFF
SET CONCAT_NULL_YIELDS_NULL OFF;
GO
SELECT CONCAT('Some Value', NULL) AS SS2012;
GO

I assume this may be intentional as in future the value of CONCAT_NULL_YIELDS_NULL will be always ON. Irespectively I find it very interesting how CONCAT function works with NULLs.