To expand on what was written just above:
"Sport" in the Driving mode affects a few things al-together: Throttle response, steering weight, suspension (if the car has DCC), cornering lights speed, A/C operation etc. (there may be more I am forgetting) PLUS it switches the gearbox to its S mode as it assumes you'd like it that way.
However, the gearbox can always be set independent from the driving modes via flicking the stick to D or S. Examples:
- If you want to be in Normal Driving mode for everything but would like the earlier downshifts and later up-shifts of the gearbox's S mode, leave Driving Mode to Normal and simply flick the stick to S.
- Similarly, if you want everything firmer but don't want the gearbox to hang on gears for longer choose Sport Driving mode, it will put the gearbox to S too, then flick back the stick once to switch to D. This will leave the car in Sport mode (overall) and the gearbox to its normal, economy biased operation.
In addition, there is a third gearbox mode which is only accessible indirectly, via the Driving modes, and that's E (ECO). Normally, flicking the stick only cycles from D to S. But if you choose ECO Driving mode you will see the gears now have a prefix of the letter E (E1, E2).
In this mode, after every application of throttle followed by a lift off, the car coasts in Neutral (you will see just "E" and no gear indicator in the dash) until throttle or brake is re-applied. Maybe this is considered an engine mode for Skoda/VW but to me it's clearly a third gearbox mode, further supported by the fact the gears now are E1, E2 etc.
Again, the gearbox can be changed to S (as you did) despite the car being in ECO mode.