The star is for Favourites, the dots represents your Top Sites view. You’ll see tabs on the right of the window, one is a star and the other a group of dots. When you open a new Safari window (cmd-n) or a new Safari tab (cmd-t) you will see either a bigger view of your Favorites, or the Top Sites view.
You will see icons of all your favorite websites in this drop down menu. The first of these is the new Smart Search Field, which appears as a drop down menu when you click in the search/url field.
