An empty grade is a grade which is missing from the Moodle Gradebook. It may be from an assignment submission which has not yet been graded or from a quiz which has not yet been attempted etc. The Exclude Empty Grades setting determines whether empty grades are not included in the aggregation or are counted as minimal grades, for example, 0 for an assignment graded between 0 and 100.
(In earlier versions of Moodle, this setting was known as "Aggregate only non-empty grades".)
If you choose to exclude empty grades, then a student's mark would represent only what they have completed so far. Otherwise, the mark would be based on the total possible mark, including what has not yet been completed or attempted.
A simple example
There are four tests, worth 25% each. Student Ming has completed the first two tests, and scored 100% on both, but has not yet attempted the third and fourth tests.
With Exclude Empty Grades enabled (i.e., checked):
This includes only the items that have been graded so far. Since the third and fourth tests have not yet been attempted, they hold empty grades. Using only the non-empty grades, Ming has a grade of 100% (25/25 and 25/25 = 50/50 = 100%).
With Exclude Empty Grades DISabled (i.e., UNchecked):
This includes all the items, attempted or not. All four tests are used in the calculation, so Ming's grade, so far, is 50% (25/25 + 25/25 + 0/25 +0/25 = 50/100 = 50%).
Note that an empty grade and a zero grade are not the same thing. If the course reaches the end and student Ming had never completed the 3rd test, you would need to decide how to treat that situation. You could leave it empty, or you could give the student a zero grade.
Checking the Setting
Here's here you can check or change this setting in your Moodle course:
- Go to Grades > Gradebook Setup
- In the top-most category of your grade items, select the "3 dots" settings menu, and select "Edit category":

- In the dialog box that appears, you can check or uncheck "Exclude empty grades".

If you have any questions about this setting, please contact eLearning Support by submitting a help ticket.