I was trying to install all dictionaries and the correct option is as shown in this image…
This is not use-friendly. I was expecting a check-box for the option “all dictionaries”. This feature, and all subfeatures does not mean all dictionaries. 
The term “Dictionaries” is plural, which led to some confusion. I initially selected “This feature” and expected all dictionaries to be installed. However, it took some time to identify the issue and realize that this option does not include all dictionaries.
And what is the question that you ask fellow users on this Ask site?
(Note that, if you decide to file a bug report, which is off-topic on this site, then this is not a bug - that’s the standard wording in Windows Installer.)
The question is does anyone else think that there is a need to improve the installation of “all dictionaries”? Isn’t a “check box” more appropriate?
You are talking about Windows Installer service, and its standard user interface. The service is not LibreOffice - we only use it, not develop it.
See e.g. the same in 7-Zip MSI installer:
It talks about feature. It doesn’t use checkboxes.
Same in Acrobat Reader:
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If you click on “Next” you will see the check boxes. I was expecting the “all dictionaries” checkbox there.
The next screen shows custom actions in the installer. The choice of installed features is not a custom action. It defines the estimated disk footprint (and so, the possibility to install on this or that disk) - you can’t move it to another stage without breaking installations with unexpected results. Basically, you ask for something having ~0 importance for user, with large side effects. Very poor use of developer resources, with a long road to user suffering.
The natural development of the installer technology is - just install everything, and don’t provide a choice. The next MSIX Microsoft’s installer technology (what you see in MS Store) is basically that; and actually, that’s good.
See also: tdf#124992
Is it possible to provide 2 options instead of one? 1) English Dictionary 2) All Dictionaries
??? What for ???
My position is: no. This would be a poor UX.
We try to decrease the options, not add new ones.
Additionally: why would English be somehow emphasized?
Is it possible to keep only 2 options? 1) This feature will be installed 2) This feature will not be installed.
I already told about that, when wrote:
But my PoV (and your proposal) is not a common consensus. People will tell, that you do not allow them to avoid bloat on their disks.
See tdf#97991.
OK. Understood. But my question is if the second option (subfeatures) can be removed or it will always be there due to technical reasons?
It may technically be removed. Note that this means: keep only “This feature, and all subfeatures…” (and remove the “This feature will be installed…”).
A remark about your tags: you flagged your question as meta which means you’re complaining about something external to the LO suite, like the AskLO site. By selecting an inadequate tag, you impact directly the number of interested contributors. I know that AskLO tag significance is not always immediately obvious, but this is not a reason for not choosing them carefully.
IMHO, correct tags would br common (because it affects all LO components) and windows (because your issue is specific to W$).
Please, review your tags.