Consider a data structure such as the below where the user has a small number of fixed settings.
[Id] INT IDENTITY NOT NULL,
[Name] NVARCHAR(MAX) NOT NULL,
[Email] VNARCHAR(2034) NOT NULL
[SettingA],
[SettingB],
[SettingC]
Is it considered correct to move the user's settings into a separate table, thereby creating a one-to-one relationship with the users table? Does this offer any real advantage over storing it in the same row as the user (the obvious disadvantage being performance).
You would normally split tables into two or more 1:1 related tables when the table gets very wide (i.e. has many columns). It is hard for programmers to have to deal with tables with too many columns. For big companies such tables can easily have more than 100 columns.
So imagine a product table. There is a selling price and maybe another price which was used for calculation and estimation only. Wouldn't it be good to have two tables, one for the real values and one for the planning phase? So a programmer would never confuse the two prices. Or take logistic settings for the product. You want to insert into the products table, but with all these logistic attributes in it, do you need to set some of these? If it were two tables, you would insert into the product table, and another programmer responsible for logistics data would care about the logistic table. No more confusion.
Another thing with many-column tables is that a full table scan is of course slower for a table with 150 columns than for a table with just half of this or less.
A last point is access rights. With separate tables you can grant different rights on the product's main table and the product's logistic table.
So all in all, it is rather rare to see 1:1 relations, but they can give a clearer view on data and even help with performance issues and data access.
EDIT: I'm taking Mike Sherrill's advice and (hopefully) clarify the thing about normalization.
Normalization is mainly about avoiding redundancy and relateded lack of consistence. The decision whether to hold data in only one table or more 1:1 related tables has nothing to do with this. You can decide to split a user table in one table for personal information like first and last name and another for his school, graduation and job. Both tables would stay in the normal form as the original table, because there is no data more or less redundant than before. The only column used twice would be the user id, but this is not redundant, because it is needed in both tables to identify a record.
So asking "Is it considered correct to normalize the settings into a separate table?" is not a valid question, because you don't normalize anything by putting data into a 1:1 related separate table.